Where is the Chinese brand tires bad?

Since the test results of Chinese brand tires can be comparable with the international big-name, then why in the passenger tire market share of the gap but so different?

Most people have a "worshiper of foreign" consumer preferences, that the foreign brands of products must be better than the Chinese brand. Not long ago, CCTV financial channel "consumer advocacy" section broadcast a program, then let a lot of people feel surprised.

The contents of the program revealed that the reporter selected 10 tires (including 4 international brands, the rest of the Chinese brand), were impact, hydraulic blasting, general road braking, professional site braking test, and tire thickness comparison . Test results are surprising - in terms of safety, the performance of Chinese brand tires is not bad, even in many ways far more than the individual well-known international big names.

It is noteworthy that this is CCTV by China Automotive Technology Research Center in Yancheng Automobile Test Field to make professional tests, the results should have a certain authority and impartiality.

At present, one-third of the world's tire production from China, but according to the China Rubber Industry Association, the Chinese brand tire companies in the domestic passenger car tire market share of only 35%, most of the market share by foreign brand tire companies occupy.

Since the test results of Chinese brand tires can be comparable with the international big-name, then why in the passenger tire market share of the gap but so different?

Chinese brand tires in the passenger car market, a low rate of matching is the key reason for this strange phenomenon.

Tire market is divided into complementary markets and replace the market, the two complement each other, symbiotic total. In contrast, supporting the market demand for higher tire brands, replace the market is more value for money.

Under normal circumstances, tire companies will enter the complementary market as the goal. Because it not only means that the brand image and market position, but also bring a stable supply demand, but also can promote its sales in the replacement market.

Data show that the global tire matching market and replacement market sales ratio is 2: 1, China is 3: 2, the developed countries is 3: 7. In other words, most of China's tire market sales in the supporting market.

It is understood that the original tires in the passenger car, the Chinese brand into the vehicle price is only 50,000 yuan following the mini-car market, more than 50,000 yuan in the basic model is not matching.

The reason, to some extent with the Chinese auto industry, "light vehicles, light parts, heavy commercial vehicles, light passenger cars," the historical background, which also led directly to the Chinese brand tires in the field of passenger cars supporting capacity "Congenitally deficient".

In the "acquired development", the Chinese brand tire companies experienced rapid growth over the past decade, mainly from the bus tires, tires and other fields of construction machinery. With many domestic manufacturing, the Chinese brand tires in the domestic real estate, infrastructure, high-speed construction of the background, relying on low-cost, low-cost crowding the market.

Moreover, the passenger car tires supporting market has long been an inherent, multinational brand-oriented supplier system, not overnight can easily enter. Chinese brand tire companies in commercial vehicles, construction machinery field force, in fact, is a helpless choice.

The original tires of the joint venture, basically Michelin, Bridgestone, Goodyear, Hankook, Kumho and other foreign brands monopoly. Especially in the Japanese and Korean joint venture among the major suppliers of basic components are the basic Japanese and Korean companies, and Japanese and Korean parts suppliers are mainly Japanese and Korean-owned vehicle manufacturers to provide support, The cooperation between the two sides is relatively closed.

The weak brand power, but also the Chinese brand tires difficult to enter the passenger car supporting system, another important reason, while the replacement market will have a greater impact.

Compared with the international big, Chinese brand tire companies are basically relatively "young." This means that they are supporting the existing system, are latecomers.

The cooperation between the OEMs and the parts enterprises is usually a series of complicated procedures, such as qualification certification, experimental testing, on-site evaluation, trial and small batch to large batch procurement, etc., often takes a long time. Once the supporting system is established, vehicle manufacturers are reluctant to take the initiative to change the supplier, because the cost of conversion and reconstruction will be high.

Obviously, as a latecomer, the Chinese brand tire companies want to replace the big international and passenger car companies to establish supporting relationships, is not easy.

Over the years, the Chinese brand tires and many other parts, like, with low-cost advantage, removed from the low-end market, will inevitably come to the low-end brand image.

In the package with the passenger car companies, the price is not the determining factor. In fact, some big international tire companies pay great attention to their own brand image, only keen to support high-end models.

"Tire is like a car's shoes, the tire brand will also affect the overall image of the car.Therefore, vehicle companies in the development of new models, the choice of tire suppliers is quite cautious." A Chinese brand car Enterprise executives in an interview with AutoKol said. For the efforts to enhance the brand image of the Chinese brand vehicle companies, the Chinese brand tires does not seem to be a good choice.

Difficult access to supporting system, is the Chinese brand tire force to replace the market an objective reason. And through the replacement of the intensive cultivation on the market, but also can enter the complementary market accumulation of brand base, technical superiority and marketing experience. But the original tires to replace the impact of consumer market habits, it is difficult to ignore.

Therefore, the brand is the brand of Chinese tire companies can not avoid the proposition, which is undoubtedly a long process of continuous accumulation.

In fact, with many manufacturing industries, the Chinese brand tire industry is also facing the growth of overcapacity trouble.

China Automotive Industry Association Deputy Secretary-General Ye Shengji said that the tire industry to enter the low threshold in the past decade, the process of rapid growth, there are also more serious blind expansion. With the economy into the new normal, car sales growth slowed down, the past extensive development of the ills gradually.

Data show that as of 2014, China's tire manufacturing industry, the number of enterprises above designated size reached 554, of which 63 companies a loss.

In 2015, the domestic steel radial tire average operating rate of about 62%, down nearly 9 percentage points; semi-steel radial tire operating rate of about 67%, down 5 percentage points. In addition, individual enterprises have been closed down, some companies cut-off maintenance, and some corporate projects due to funding and environmental issues halted.

At the same time, intensified in recent years, "double reverse" on the Chinese brand tire companies have a greater impact.

According to the China Rubber Industry Association tire branch of the 42 major tire companies statistics, 2015 tire exports of 154.6 million, down 8.72%; export delivery value of 55.48 billion US dollars, down 15.81%. Two export targets "double down", in China's tire industry is the first time.

In addition, as raw material prices and labor costs rise, the Chinese brand tire companies have low-cost advantage is gradually lost. Not long ago, a number of domestic tire companies have raised the price of the product.

In the above series of factors, the Chinese brand tire companies are increasingly aware of the need for transformation and upgrading, and expand the share of the passenger tire market will become an inevitable choice.

Therefore, the CCTV "consumer advocate" column group at this time to do such a test, the implication of intuition interesting.

It is noteworthy that the Chinese brand tire companies pay more attention to brand promotion, and overseas mergers and acquisitions may well be a good policy.

2015, China Chemical Industry Group spent 7.1 billion euros to acquire international tire giant Pirelli, China's tire industry to become more typical of the successful merger case. This year in March, Pirelli and the Chinese chemical's Aeolus tires to determine the restructuring program, Fengshen tire will be playing a focus on industrial tire business, based in China, listed in China and has the world's influence of large international companies.

Professionals believe that to enhance R & D and innovation capacity, is the brand of Chinese tire companies to enhance brand power of the fundamental path. Almost all the international big-name have had significant inventions, the tire industry in the world made a significant contribution. For example, Goodyear invented the rubber vulcanization method, Dunlop invented the pneumatic tire, Michelin invented the removable tires and radial tires, and put forward the concept of green tires.

Overall, the Chinese brand tires in the test with the international big one under the high, can be said that the effectiveness of transformation and upgrading in recent years show. But the passenger car tire market, the Chinese brand tires image of the product needs to be further improved, obviously there is a further way to go.

At present, the Chinese brand tire industry is accelerating the merger and reorganization, which will be a big wave of sand washing process. Who can come to the fore, and wait and see.