With the occurrence and evolvement of world financial crisis, world tire industry has been greatly threatened. The consumption for automobile has greatly decreased, thus resulting in the decrease of production volume of tire.
As the largest tire exporter in the world, China replies much on its tire export. In this case, due to the sharp decrease of external demand, many small and medium-sized enterprises will face profit reduction, inventory increase and capital shortage, thus leading to bankruptcy.
However, the crisis also cultivates many opportunities. The decrease of oil and raw material price has lowered the production cost pressure of tire corporations.
Meanwhile, the increasing domestic vehicle ownership rate also maintains the increase of tire demand. What’s most important is that the crisis avails Chinese tire corporations of the opportunity to realize that though China’s tire production and rubber consumption volume rank top in the world, the tire products produced by most Chinese tire manufacturers lag behind those world leading tire corporations such as Michelin, Bridgestone, Goodyear etc by means of quality, safety, technology, environment-friendly performance etc.  more...