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Zhang Wanyou, general manager of Shuangqin Group, said recently that China's tire industry is facing normalized micro growth.
He made the above statement when he gave a speech entitled "Trend Analysis of the Current Tire Industry and Forecast of Future Development Trends" at "2014 Double Money Rubber Salon".
Zhang Wanyou pointed out that the “micro-growth†of the tire industry is mainly reflected in five aspects: 1. Slower growth rate; 2. Structural adjustment of the tire industry, development toward meridianization; 3. Tire exports are faster than production expansion, and domestic competition is intensified. Occupy the international market; 4, excessive production capacity, etc. lead to the downward focus of tire prices; 5, corporate profitability space is decreasing.
Inventory In 2013, Zhang Wanyou summed up three sentences: the difference from the budget (embodied in the price reduction, sales revenue shrink); better than expected (embodied in profits, output growth can also be); faster than expected (embodied in the product structure Adjustments, industry consolidation, acceleration).
Regarding the development trend facing the tire industry, Zhang Wanyou summarized seven key words.
1. The growth continues and the development is stable. There are two reasons for this: First, we are concerned about the Third Plenary Session, the key words from development to reform; Second, the automotive industry is booming production and sales, heavy trucks are also stabilized recovery, which will drive the development of the tire industry.
2, excess capacity, competition intensified. The tire industry has a saying called "overcapacity, lack of supply," and although it sounds contradictory, the tire industry is in fact structural, dynamic overcapacity, low-grade tires, and low-cost tires. After the internationally renowned tires entered the domestic market, they made the domestic competition international. It is expected that the release pressure of production capacity in the coming and next year will be even greater.
3, industry integration, transformation and upgrading. Industrial industry concentration is low, and integration is imperative. The country is also promoting the integration and transformation of the industry through policy guidance.
4, green development, energy saving and low consumption. "Green" has two meanings: First, it is necessary to achieve tire performance and environmental protection, and second, it is to make the manufacturing process environmentally friendly. The increase in environmental protection requirements for products has led to a corresponding increase in the environmental protection requirements for raw rubber. In addition, he also mentioned that the renovation of used tires and the use of reclaimed rubber may have a certain impact on the demand for rubber raw materials.
5, The cost increases and the profit is compressed. Manufacturing costs such as labor, environmental protection, and energy are rising, while tire prices are low, which offsets the advantage of lower raw material prices. If the price goes down further, it will face a "scissor difference."
6, model innovation, cooperation and win-win. The tire industry needs to seek innovation from marketing models such as e-commerce. In addition, we must strengthen upstream and downstream cooperation and win-win cooperation, and improve industry competitiveness through the industrial chain.
7, break the barriers and jointly respond. Break down international trade barriers. China wants to introduce its own labeling method.
Finally, Zhang Wanyou stated that he will remain cautiously optimistic both next year and future.
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