In the past two years, China's tire companies have been in a difficult position. The main reason is that competition has increased, products have been homogenized, and low-cost and low-margin operations have been carried out. At the same time, labor costs and product costs have increased year by year. Many companies make ends meet and go bankrupt. The three years from 2013 to 2015 have been the year of Chinese tire companies' transformation. Before 2013, Chinese tire dealers can earn a full year's worth of profits each year, but after 13 years, they all began to clamor for “business hardshipsâ€. "." With the emergence of supply-side reform and supply-side reforms, China's tire production has finally declined after years of growth.
Making a tire is a practice without end
At the same time, Ebb Tide, after the waves pushed forward, some “zombie tire companies†and some simple and crude SMEs have gradually been eliminated in the market in recent years. At the same time, some of the excess capacity was also eliminated.
Tire business bankruptcy
In 2015, the first “down†tire factory Dongying Debaobao became the first domino, followed by 14 years of “high profile†appearance, 15 years of “low-key†ending in Fortel, and 2015 “Beijing Firstâ€. The bankruptcy records of state-owned enterprises were set up, and the bosses “run the road.†The Xingtong Rubber Company, which was indicted by the creditors, staged a drama of bankruptcy and bankruptcy on China’s land. In addition to bankruptcy, many companies embarked on the road of mergers and reorganizations. Shuangqian Kunlun, Saiwan Jinyu, and Double Star Hengyu, many companies rely on this approach to embark on the road to recovery.
Zhao Huaxi picked up cups of Chinese wine, and several families were happy. Several companies went bankrupt and reorganized, and companies continued to grow. Among them, a large number of Chinese tire backbone enterprises such as Double Star, Saiyu Jinyu, Zhongceg, Linglong, Sen Qilin, and Triangle are still on the road of development. They continue to expand overseas operations, build tire factories, build rubber plants, and build Rubber processing base. The so-called natural race, the survival of the fittest, China's tires need to lead these big brothers, can lead the Chinese tires to a bright road.
Double money tire
Most of China’s tires are mainly export-oriented. Despite the endless repression of Chinese tires by various countries in the world, Chinese tires are still maintaining a strong momentum in the export market by virtue of their price advantage, but since last year, exports have fallen seriously. In the United States, China’s tire exports accounted for more than 30% of the U.S. market. The continuing US anti-dumping policy has caused Chinese tire exports to continue to suffer a fatal blow.
Exports were hit hard, domestic sales could not keep up, and with continuous internal friction, most of the tires companies in the country were struggling. They were tied to the government’s relief and subsidies. Double-money, going forward year after year losses, in May 2016, double-money shares officially changed its name to Huayi Group, which also marks the end of the double-money era, and now I am afraid that can play the backbone of the rest of the Chinese policy rubber. Compared with state-owned enterprises, private enterprises are thriving. The racing wheel Jinyu, exquisite, and triangular are constantly developing and growing with their flexible management models. They are directly facing the world in marketing.
Although China’s tire companies are currently in an unfavorable stage of historical development, they are also at the stage of winning the victory. Enterprises with strength, dare to innovate and understand management will surely survive. This is not a bad thing for the Chinese tire industry. To make it worse, the Chinese tires can really be made and the Chinese tire brands can be erected.
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