Jiangsu's tire exports ranked second in the country

The Jiangsu region is currently an important base for tire production in China. The tire export volume ranks second in the country, accounting for about 15% of the total export tire volume in the country. The world-famous tire companies Bridgestone, Sumitomo, Cooper, Toyo, Kumho, Hankook, Zhengxin, Jianda, Nangang and Huafeng all invested in factories in Jiangsu. Domestically owned tire companies have double money, Xugong, and red beans. According to statistics from the Jiangsu Inspection and Quarantine Bureau, in 2012, Jiangsu exported a total of 30,190 batches of tires, with a total of 14.824 million pieces, and the amount was 176.212 million US dollars. Compared with 2011, batches increased by 0.5%, the number increased by 27.5%, and the amount decreased by 1.6%. In 2012, Jiangsu exported tires to the United States, the European Union, Mexico, South Korea, Japan, Australia, Canada, Brazil, Russia, India, the Middle East, Africa and other 178 countries and regions, the export volume is stable. Among them, the United States and Europe are the major tire export markets in Jiangsu, the United States accounts for 22.5% of the export value, and the EU accounts for 21.9% of the export value.

Jiangsu's export tires include passenger car tires, truck and bus tires, motorcycle tires and bicycle tires, as well as a small number of industrial vehicle tires, construction machinery tires, trailer tires, agricultural tires, and specialty tires. Among them, passenger car tires and light truck tires are the main varieties of export tires in Jiangsu. Judging from the statistical data, the amount of tire exports from Jiangsu declined slightly in 2012. Further analysis found that in addition to the EU countries, exports of tires in Jiangsu continued to grow in 2012. In particular, the United States exported tires of US$396.38 million in 2012, a year-on-year increase of 10.9%. In 2010, after the US Tire Special Protection Project's impact on export volume dropped drastically, it was difficult to maintain growth for two consecutive years in 2011 and 2012. It can be said that Jiangsu Tire Enterprises has stepped out of the plight of the US Tire Special Security Case. The main reasons for this analysis are as follows: First, increase investment in R&D, adjust the structure of export products, and gradually shift the production focus to products with high technological content and high added value, increase brand building efforts, occupy the market with quality and brand; Adjust the tire export prices, and share the high tariffs with the US distributors in order to stabilize the U.S. market; Third, Jiangsu tire companies export large multinational companies, such as: Hankook, Southport, Zhengxin, Cooper, Kumho And so on, we can respond to the US tire special protection case by adjusting the origin of export tires. Jiangsu Inspection and Quarantine Bureau also took many measures and made positive efforts: First, through inspection and enterprise cooperation, strict "design, procurement, production, and delivery" four customs, and continuously improve product quality; Second, timely appointment inspection and quarantine, open up green channels, trial A series of convenient measures such as a 24-hour work system and the implementation of the “Administrative Measures for the Classification of Exported Industrial Products” have accelerated the speed of customs clearance. Third, the needs of the international market have been closely studied and information has been issued to guide the export of enterprises in order to further broaden the export market. Diversified strategies to reduce and mitigate market risks.

However, with the further intensification of the European debt crisis, protectionist sentiment has spread. In recent years, the European Union has successively introduced a number of technical trade barrier measures, including motor vehicle safety regulations, REACH regulations and tire label regulations, which has greatly increased the cost of China's tire exports. And difficulty. In particular, the European Union's tire labeling regulations are, on the surface, a label issue. The substance of the tire tires is related to the safety, environmental protection, energy consumption, and other indicators. It also imposes higher requirements on the production technology, inspection standards, and testing methods for export tires in China. Especially in the detection of facilities and facilities. The fuel efficiency level project was completed by a rolling resistance tester indoors. Rolling resistance tester equipment is expensive and most enterprises in China do not have it. Tire wetland grip performance and rolling noise test items need to be simulated in an outdoor testing ground to obtain accurate and relevant information. The investment in the tire outdoor test field is huge. Before the Zhengxin Rubber Mages Tire Testing Site was completed at the end of 2012, there was no test site in China that could meet the requirements. The promulgation and implementation of the European Union's tire labeling regulations will directly increase the testing cost of imported tires in Europe and indirectly increase the production costs of tires, prompting consumers to purchase more high-end tires. The European Union's tire labeling regulations will be enforced on November 1, 2012. The regulations stipulate that the objects of the tire tires, light truck tires, truck tires, and bus tires manufactured from July 1, 2012 will be used. Affected by this, the amount of tires exported to EU by the Jiangsu region in 2012 was 38.743 million US dollars, down 19.5% year-on-year. After experiencing a 30% growth rate in exports of tires from the EU for three consecutive years, the Jiangsu region experienced a sharp decline in 2012. As the second largest export market in Jiangsu, Jiangsu's tyre exports have directly lowered the export of tires in Jiangsu.

In 2012, factors such as policies, environment and raw material prices all contributed to the tires, the capital and labor-intensive industries. The policy of replacing old cars with old ones in China has directly driven the tire industry's upgrading efficiency. The central bank’s interest rate cut policy also gradually improved the investment environment of the tire industry. In the international environment, the United States tire special security case ended on schedule, natural rubber prices fell sharply. The above reasons make the tire industry's profitability gradually pick up. While seeing opportunities, we must also be conscious of potential risks. First of all, major tire giants have increased their investment in China, foreign trade barriers have been set up, labor-management relations have been strained, labor mobility has been overstrained and labor shortages, and excessive cost competition demands, which will inevitably lead to a decline in corporate self-discipline and become a hidden issue of quality problems. Second, the sharp drop in export growth and the continuing sluggish domestic market have made the issue of tire product supply greater than demand more and more prominent. In addition, companies insist on sales and production, rational release of production capacity, reduce inventory of finished products, making the issue of overcapacity intensify, the general lack of business start-up. Over the years, due to the low technical level of our tire industry and weak product development capabilities, tires are mostly low-tech, low-grade, low-value-added products and lack market competitiveness. This problem, in the case of faster economic growth and better market demand, the contradiction between supply and demand will often be obscured; once the economic growth rate falls and market demand is low, the contradiction between supply and demand will gradually emerge. Again, from the perspective of the industry chain, the tire industry's bargaining power for the upstream and downstream is not strong, squeezed by the upstream raw materials and downstream vehicle manufacturers, only to enter the high-end tire market, the company's net profit margin can be improved, and product development and quality brand It is an indispensable core competence. In addition, China's tire manufacturing industry, the proportion of labor costs is not high, between 2% -3%. The labor costs of major international companies such as Michelin are about 10% or even higher. The increase in the proportion of labor costs in production costs will be the future trend. With the development of the country’s economy, the advantages of China’s labor resources will become increasingly weak. Increasing the value-added of products is an important issue for tire companies.

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