Chinese tyres conquer the European market
One of the most popular imported products in recent years were Asian cheap car tyres. The Asians have started to sell cheap tyres, qualitatively similar to the budget tyres of European manufacturers. Therefore, they have become competitive and are able to strengthen their position on the European market.
Asian tires gradually displace used tires
According to ETRMA, in the period between January and the end of November 2016, growth in imports was recorded for both commercial and consumer tyres. The imports to Europe increased both for commercial and consumer tyres, and amounted to 16% and 13%, respectively. Every year, more and more imported tyres come from Asian countries. In 2016, more than 46% of consumer tyres and 63% of consumer tyres were imported to the European market from China. Due to the low price and constantly improving quality and durability, Chinese tyres are gaining popularity, while gradually displacing used and retreaded tyres. The increasing popularity of cheaper products imported to Europe from China and other Asian countries has been reflected in the sales results of many tyre companies, including the OPONEO Group.
- In 2016, OPONEO Group recorded a rise on the European market in each segment. The most dynamic was the sale of cheap Asian tyres, which amounted to 70%. This confirms the growing demand for cheaper imported tyres and growing market share of Asian manufacturers - says Ernest Pujszo, Commercial Director.
Asian tyre market has revived the European tyre market
According to the Global and China Tire Industry Report, in 2016 the global growth in the global automotive market, was strongly influenced by the growth generated by Chinese automotive market that have led to a slight increase in the tyre market. Compared to the previous year, the tyre production in China increased by 1.2% to 572 million, and their exports during the period between January and November 2016, increased by 7.3%. On the basis of data provided by ETRMA, import of passenger tires from China in 2016 (data at the end of November 2016), amounted to 65.5 million units. One of the countries most afflicted by increased imports of Chinese tyres was the United Kingdom. Asian tires are inexpensive and subsidized, which makes them year-by-year more popular. In addition, the tests conducted by OPONEO experts show that the tires of leading Chinese brands do not differ in quality from the economic tyres of European manufacturers. Increasing share of Asian tyres in the UK, resulted in a positive impact on the sales growth of the tyre industry. In comparison to 2015, Oponeo.co.uk Ltd reported a 38% increase in sales.
Between 2017 and 2020, the Chinese car market is expected to grow by about 4%. Experts believe that next year, further strengthening of the market position of Chinese tyres will be observed. The number of imported products is expected to increase, which may ultimately result in a significant reduction in interest in used and retreaded tyres.