A few days ago, major brand tire manufacturers such as Bridgestone, Goodyear, Michelin, and Kumho have announced that they will raise the tire prices in the United States market by at least 4%. At present, this surge of U.S. tire prices has reached the Chinese tire market, and domestic brand tire prices have entered an all-round rise.
Recently, a survey conducted in Beijing Xiaowuji Auto Parts City and Shibalidian Auto Parts City found that major brand tire dealers have received notifications from manufacturers regarding the price increase of tires from the beginning of last month, and the upward adjustment ranged from tens to hundreds. Yuan varies.
Xu Chunhua, vice president of the China Rubber Industry Association, said in an interview with reporters that the rise in rubber prices this year is the main reason for pushing up the price of tires.
Domestic tire prices rise
“We received a price notification from the factory last month. This is the first time I have experienced tire prices in more than three years in the industry.†A staff member of the Yokohama Tire Store at Shibali Store Auto City told reporters that Yokohama Tire mainly For the Camry and other models supporting the use of semi-natural and semi-synthetic materials, so the impact of rising raw materials is not great, the brand's high-end tires rose by 50 yuan. "Although the rate is modest, the price increase has clearly affected sales."
"We mainly provide support for Chery and other models. The price of Jiatong brand tires has ranged from several tens of yuan." Wang, manager of Giti Automotive Store, told reporters, "The recent sales of tires have declined compared with the previous period."
“We announced the price increase at the beginning of the year, and the average factory price has risen by about 5%, but it has not had a significant impact on the market.†Hangzhou Zhongce Rubber Co., Ltd. International Trade Department, which manufactures tires such as Chaoyang and Lucky, etc. Manager Linping Lin said in an interview with LANXESS “China Rubber Dayâ€.
The reporter found during the investigation of Shibalidian Auto Parts City that the price of high-end tires was smaller than that of low-end tires. According to Du Jianing, director of the San Qingyuan Goodyear store, Goodyear, although it has already increased its price according to the manufacturer's requirements, it is only 10 to 20 yuan, which can basically be regarded as normal price fluctuations and has no impact on actual sales.
Michelin, Warrior, German horse brand, Bridgestone and other brand dealers also confirmed to the reporter the news of tire prices, but as of press time, tire companies such as Michelin and Bridgestone have not made an official increase in tire prices Respond.
Rising prices or just short-term behavior
“Rising raw materials are the main reason for rising tire prices. Whether it is high-end tires based on synthetic rubber or mid- to low-end tires with natural rubber as the main raw material, they have been affected in varying degrees by high oil prices and reduced natural rubber production. "Hu Linping told reporters that despite the recent decline in the price of rubber, the tire raw materials currently on the market are all purchased before May, and it is reasonable to raise prices.
In the announcement of the price adjustment, the German brand tires clearly indicated that the price adjustment was mainly to deal with the cost pressure caused by the price increase of raw materials.
As an upstream supplier of multiple brands of tires, Ko Mao Ting, CEO of the synthetic rubber manufacturer LANXESS Group in Greater China, told reporters earlier this year that global oil prices are high this year, Thailand and other Southeast Asian regions have reduced rubber production due to climatic reasons, and domestic The increasing demand for high-end tires and many other factors superimposed directly on the rise in rubber prices and even tire prices.
Xu Chunhua expects that the prices of tire raw materials this year will increase by 40% from last year, and tire prices will also increase by 20%.
Despite the wide range of tire prices and fierce, but many industry insiders believe that this round of price increases should not last long, rubber prices should fall back to the level before the price increase.
Tire Industry Competition Changes
The prevailing view was that the current domestic tire market is divided into three major camps: Michelin, Bridgestone, Goodyear and other companies occupy the first echelon; Kumho, Hankook, and Jiatong are among the second echelon; Domestic tires such as Chaoyang and Luck can only rely on low prices to hit the market.
Analysts believe that the Sino-American tire special security case has caused many export-oriented domestic tire companies to turn their energies into domestic markets. After experiencing short-term price increases, the price war will be difficult to avoid as the price of raw materials falls.
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Li Fu, Assistant to General Manager of Tianfu Futures, expressed his concern about the increase in automobile costs caused by the increase in tire prices: “Tire is an important spare part for automobiles. If tire prices continue to rise, it will inevitably lead to higher vehicle costs. Lower than last year, the price increase may further have a negative impact on the auto market."
Li You also believes that the tire market, like the automotive industry, will usher in an era of elephant dancing. In the future market reshuffle, a group of tire companies will be eliminated.
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