Time:2013-4-16 9:32:26

Chinese Tire enterprises don't have strong capability of bargaining with both upstream and downstream in China. They face squeeze between materials of upstream and OEMs of downstream. With the increasing labor cost, only if enterprises enter high-end tire market, their net profit rate can be improved fundamentally.

Product development and quality brand are indispensable core competence. In recent years, European Union launches many technical barriers to trade, including Moter Vehicle Safety Regulations, REACH Regulations and Tire Labeling Regulations, all of these increase the cost and difficulty of tire exporting. At the same time, USA, Brazil, Thailand, Colombia, Mexico and other countries also launch anti-dumping investigation to China tires. After the primary stage of low-end manufacturing and OEM, tire enterprises face the key issue of speeding up to enter high-end market, enhancing private brand development and improving product added value.