Chinese premium tyre manufacturers have an interesting future. One that’s full of both opportunities and challenges. Over the past few years, Chinese tyre manufacturers have taken great strides regarding quality, technology, and brand recognition and have emerged as some of the leading competitors in the global tyre market. As a matter of fact, many premium Chinese tyre brands are now considered to be pretty viable alternatives to some of the most well-established international brands out there.
Opportunities
A steadily Growing Tyre Market
China is currently the world’s largest automobile market and is set to dominate the industry in the foreseeable future. That’s why the demand for premium tires is rising ever higher, not just in China but everywhere these automobiles are exported.
Belt and Road Initiative
China’s highly ambitious Belt and Road Initiative (BRI) is strengthening infrastructure and trade ties with nations across Europe, Asia, and Africa. This awesome initiative provides valuable opportunities for many Chinese tyre manufacturers to visibly expand their presence in these regions and thereby tap into new markets.
Technological Advancements
Chinese premium tyre manufacturers have been investing a lot of their resources in research and development (R&D) in order to enhance their technological capabilities. An innovation-focused approach has enabled allows them to develop state-of-the-art technologies, never seen before. Run flat tyres, for instance, along with low rolling resistance tyres are advancements that have given them a clearly visible edge in the market.
Cost Advantage
Chinese tyre makers work on economies of scale, and this allows them to have lower production costs viz-a-viz their international counterparts. Lower operating costs mean lower pricing for the end consumers – leading to higher sales.
Challenge
Brand Perception
Chinese tyre manufacturers still face considerable challenges in terms of brand equity, trust, and perception in various international markets. Here, building a vibrant brand image and greater overall credibility will be critical to their success in the global market.
Competition from Already Well-established Brands
Chinese premium tyre makers face strong competition from well-established international brands enjoying a long-standing reputation and a loyal customer base. Overcoming such powerful competitors demands continuous product development and investments in technology, along with a heavy marketing budget.
In a nutshell Chinese tyre makers have a bright future – as long as they can handle the challenges that lie ahead.
