Gao Yunhu: Tire Industry Needs to Accelerate the Breeding of Large International Groups

Gao Yunhu, deputy director of the Department of Materials Industry of the Ministry of Industry and Information Technology, recently said at the “2012 Automotive and Tire Industry Summit” and the Global Business Summit that the “12th Five-Year Plan” period is a crucial period for China’s tire industry to become stronger and stronger. To this end, it is necessary to make full use of various favorable conditions to promote the transformation and upgrading of China's tire industry; encourage tire companies to speed up mergers and reorganizations, and accelerate the development of a group of large-scale tire enterprise groups with international competitiveness.

Gao Yunhu said that while the Chinese tire industry is developing rapidly, there are some outstanding problems.

First, the lack of independent innovation capability. With the exception of a few companies, the vast majority of local tire companies are relatively small in scale, with limited capacity for R&D and innovation, fewer products developed by independent innovation, and unreasonable product structures, relatively few high-end products, and relatively serious homogeneity problems.

Second, the degree of industrial concentration is relatively low. There are more than 500 tire companies in the country. The top ten companies in the industry have a market share of about 30%, while the global top three multinationals have a global market sales of 46%.

Third, the key raw materials and products are excessively dependent on the international market. In China, 75% of natural rubber needs to be imported from abroad. Due to the lag in industrial restructuring, tire production capacity has grown too fast, and 40% of products need to rely on the international market.

Fourth, the development of upstream and downstream industries is not coordinated. Due to various factors such as technical level, brand building, and consumption habits, local tire brands are generally at a disadvantage in the automotive tire industry.

Gao Yunhu believes that the "12th Five-Year Plan" period is a crucial period for China's tire industry to become stronger and stronger. It is necessary to scientifically judge and accurately grasp the situation of world economic development, timely adjust the tire industry related policies, and make full use of various favorable conditions to promote the transformation and upgrading of China's tire industry.

The first is to give full play to the market mechanism, guide enterprises to speed up mergers and reorganizations, encourage enterprises to reorganize across regions, extend industrial chains, optimize industrial distribution, strengthen coordination and cooperation with the automobile industry and enterprises, increase industrial concentration and efficiency of resource allocation, and strive to build China. Independent brands, accelerating the development of a group of large tire enterprise groups with international competitiveness.

The second is to improve industrial technology innovation capabilities and focus on enhancing core competitiveness. Encourage enterprises to increase technical investment, develop high-end tire products, increase product technology content and added value, improve product quality, develop green and energy-saving passenger car tires, high-performance passenger car tires, aviation tires, and additives for high-performance green tires; encourage local enterprises Establish a professional tire laboratory to improve the development, inspection and testing capabilities of new products.

The third is to strengthen technological transformation and vigorously promote the transformation of industrial development methods. It is necessary to adhere to the principle of controlling total volume and optimizing stocks, accelerating the upgrading of new technologies, new materials, new processes, and new equipment in the tire industry; encouraging the use of environmentally friendly, non-toxic, harmless raw materials and production processes; and improving energy and water use efficiency. To promote the green development of the industry.

Fourth, establish the development standards for green tires in China and improve the standard system. According to the development of China's tire industry, with reference to the world's advanced tire standards system, establish a green tire standard framework to improve tire safety, energy consumption, driving comfort, carbon dioxide emission reduction and other aspects.

Fifth, continue to strengthen international cooperation and create an external environment conducive to development. In accordance with the principles of mutual benefit and win-win, the Chinese tire industry should combine the introduction of foreign investment with foreign investment, encourage foreign investors to invest in the Chinese tire industry, encourage foreign capital to cooperate with Chinese companies and develop green tires, and at the same time, support Chinese independent brand enterprises to optimize the foreign trade structure. Accelerate the development of new advantages in technology, brand, quality, and service as its core competitiveness. While striving to maintain the original export market, we will actively explore emerging markets and raw material sources, gradually establish overseas production bases, and promote market diversification.