Breaking outwards to force Chinese tires to find new road signs

The first year is 35%, the second year is 30%, and the third year is 25%.

Starting from September 26th, all Chinese car and light truck tires exported to the United States will be subject to a punitive tariff of three years in the United States at a rate of 5% per year.

Although the magnitude of the punitive tariffs of 55%, 45%, and 35% previously recommended by the US International Trade Commission has been reduced, when September 11th -- this day of special memory for Americans, US President Barack Obama When the Sino-U.S. tire special protection case was adopted, whether it was the time of implementation or the final result, it was a surprise for many people.

First of all, the Tire Industry Association, the three US-related interest groups in the tire industry, the US Tire Import and Export Interest Group, the US’s three largest automakers, and the US retail interest groups all publicly oppose the application of special insurance restrictions on Chinese tire products. In the case of measures, Obama still passed the special security case; secondly, the new tire tariff policy also takes effect beyond the expectations of everyone. Prior to this, everyone believed that even if the special security case is passed, the implementation time of the new tariff will be on January 1, 2010, although there is an expectation that the special security case will be passed on September 26, 2009. The effective period of tariff also makes it difficult for Chinese tire companies to respond.

“The tire special protection case has already formed an impact on China’s tire industry. At present, we are actively working to resolve this impact. This requires our tire companies and industries to work together. From a short-term perspective, we need our business from various aspects such as marketing. To work hard, in the long run, companies need to upgrade their own product quality, and the entire industry adjusts its industrial structure. At the same time, we also need government departments to support relevant policies.” Deng Yaxi, secretary-general of the China Rubber Industry Association, said in an interview with this reporter.

It is understood that 40% of tires produced in China are exported, and 1/3 of them are exported to the United States. The maximum tariff of up to 35% is implicated, meaning that Chinese tires that are mainly for low-priced brands will become as expensive as Michelin, and will have no market in the United States in the first year. According to preliminary estimates by the China Rubber Industry Association, this will affect the employment of about 100,000 workers and lose about 1 billion US dollars worth of exports.

What's more important is that if the current global economy is still warming up, will such trade protection be replicated? What will be the next step for China's tire industry, which has an important dependence on imports?

China's rubber consumption ranks first in the world for two consecutive years, and rubber consumption exceeds 3.1 million tons annually, of which 70% is used to make tires. China is a big producer of tires, but it is not a tire-producing country.

According to a survey conducted by a certain automotive professional media, when consumers buy a car, they only pay attention to the tire brand and performance of only 18.5%, while consumers who pay attention to tire brand and performance when changing tires are 88.6%. When choosing a tire, 90.3% of consumers choose a tire with good quality and performance.

The survey also showed that 82.4% of consumers believe that the quality of self-owned brand tyres is inferior to that of joint venture brands; 66.4% of consumers think that the performance of self-owned brand tyres is inferior to joint venture brand tyres; 45.3% of consumers think that the price is joint venture brand tyres. The advantages. 32.5% of consumers believe that the service of self-owned brand tire companies is not as good as that of joint venture brand enterprises.

“In fact, compared with the international top level, the manufacturing process, technical level and product quality of domestically produced tires are not much different. It can even be said that it is already very close to the international level.” Deng Yaxi said: “But from the perspective of brand influence, both The gap is very obvious."

At the technical level, the quality of domestically produced heavy-duty tires and bias tires is not much different from that of international standards. For tires for passenger cars - radial tires, ordinary tires and foreign brands are not much different, but they are obviously weaker than foreign ones in high-end products. Brand, has become the consensus of the tire industry in China.

“The Chinese and American tire special protection cases mainly affect the export of tires for cars and special vehicles. The impact on ordinary tires is not significant. Besides, the quality of domestically produced tires is no worse than that of foreign countries, and some even worse than theirs. Even better.” Wang Mingjiang, chairman of Jiangsu Jiangyan Tyre Co., Ltd., said: “At present, the overall production technology and equipment of domestic tire companies are not inferior to foreign ones. We are only poor in social awareness and brand influence.”

In 2004, 10 tire brands, including the Linglong brand of Shandong Linglong Rubber Co., Ltd., were included in the list of Chinese brand names. People are delighted and are measuring the gap between “Chinese famous brand” and “World famous brand”.

Zhang Keshun, head of the Shandong Linglong tire planning department, said that from the point of view of technology, equipment, and R&D, there is still a gap between China's tire companies and foreign countries, especially in research and development, which has led to a clear gap in environmental protection. For high-end tire products, the quality of domestic tires is not as good as that of foreign products. However, in ordinary tires, such as the largest production of radial tire products, the quality of domestic tires is not worse than that of foreign products. Even from the perspective of performance, domestic tires are even better. This is mainly reflected in the fact that domestic tires are more resistant to wear and use. Longer time and so on.

Zhang Keshun also admitted that if it comes to brand awareness, domestic tires are clearly at a disadvantage. This directly leads to consumers' trust and use of quality in domestic tires. “Because of cognitive misunderstandings, many consumers do not agree with the quality of domestic tires. It should be said that it takes time to correct such perceptions. Many other Chinese products have also passed this process, such as color TVs, Years ago, consumers were very appreciative of the quality of foreign brands, but now they are also very much in agreement with the quality of domestic brands.Although tires are not products of cutting-edge technology, they still have certain technological content, so consumers should fully agree with the domestic tire brands. The product needs time," said Zhang Keshun.

The survey shows that the current use of foreign brand tires is generally higher than domestic tires, especially in the car. However, people in the industry pointed out that in the fierce market competition, domestic tires are not without a way out. The advantage of Chinese companies is to make tires that are most suitable for the Chinese market. Compared with foreign brands, domestic tires are disadvantaged in brand awareness and technology, but they are not inferior in network construction and after-sales service. At present, China's tire industry already has a certain degree of competitiveness. If it can seize the favorable opportunity for the rapid development of China's auto industry, there will be some follow-up support and focus on the details of production. In the future tire market, domestic tires will still have certain Expansion capacity.

Zhang Keshun pointed out that currently in the domestic market, car tires are still dominated by foreign brands, but the status of domestic tires is gradually strengthening. An important reason for foreign tires to dominate is the natural advantage in matching, which is closely related to the development of the auto industry. However, in the retail market, domestic tires are increasingly recognized. In addition, domestic tires have taken the initiative in terms of truck tires.

Faced with this situation, it is necessary to establish a technology development and innovation system, improve the quality control of the production process, and strengthen the emphasis on quality management and the need for capital investment to be put on the agenda of the enterprise. On the other hand, the more prominent issue in corporate quality assurance is detection methods. Such as the international tire giant Michelin has built five or six test sites. Fortunately, some domestic enterprises have begun to realize this point. Shandong Delta Group has invested 70 million yuan in building its own tire testing ground and improving various detection methods.

With quality assurance and familiarity with Chinese roads, Chinese tire companies may find their way to success.

Wang Mingjiang believes that tires are ultimately on the road, and Chinese road traffic conditions will become more familiar with Chinese companies. This will also allow Chinese tire companies to start from R&D and produce more targeted traffic conditions in China. Tire products are thus favored by consumers.

“We have developed corresponding products for the market in the north, especially in the northeast with long winter time and more rain in the south. Currently, the results are not bad. It should be said that developing different products by regions and road conditions is the future. One direction of development." Zhang Keshun said.

Deng Yaxi said that the simultaneous development of both domestic and foreign markets has always been the goal of China's tire industry. Under the background of China’s expansion of domestic demand, domestic tire companies should pay more attention to the domestic market, and they can do more.

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