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China tire industry why "increase income does not increase profits"

Economic indicators are "mixed"

From the data point of view, 1-8 months, China's major tire enterprises production, sales revenue, exports, all maintained a growth trend.

Among them, the output increased by 8.11%, the export volume increased by 12.91%, and the sales revenue increased by 14.5%.

However, Deng Yali did not show their satisfaction with the development of the industry because of these pleasant targets.

In her view, the other important data, exposing the crisis that the whole industry is facing.

CRIA according to statistics, the first 8 months of the total profit of major domestic tire enterprises, plunged 65.10%.

At the same time, the loss surface of the tire enterprises was up to 42%, and the average profit rate was low to 1.55%.

"The difficulties of the Chinese tire enterprises can be seen as a result." Deng Yali said.

She used three words to sum up the situation: "increase production, increase income, and do not increase profits."

Tires world network has learned that since this year, the price fluctuation of domestic tire products is obvious and shows a more obvious tide of price rise.

"In fact, when the price of a tire enterprise is rising, it has a great momentum, but it is quiet when the price is reduced." Other business people say.

The overall increase in tire products is far less than the increase in the price of raw materials (rubber, carbon black, additives, steel cord, etc.), the person said.

In addition, there are many signs that the stock of tire manufacturers has been rising in the near future.

Three difficulties plagued the development of the industry

While reporting on the development of the industry, Deng Yali summed up the three major difficulties faced by the tire enterprises.

First, the situation of industrial development is complicated. At present, the price of raw materials is fluctuating violently, the pressure of safety and environmental protection is unprecedented, and the cost of tire production is increasing obviously.

Two, the friction of foreign trade is frequent. China tire exports frequently encountered "double counter", following the United States, the EU, India and many other countries and regions, and then the Chinese tire.

The three is facing the problems of high tariff of natural rubber, the confusion of the standard of compound rubber and mixed rubber, and the processing trade. All these have a great impact on the development of the industry.

Tires world network observed that due to poor level of technology and management innovation, slow transformation and upgrading, and capital chain breakage, some domestic tire enterprises were shut down.

A considerable number of enterprises are in the plight of difficulties in capital turnover and operating performance losses.

In this regard, Zhongce Rubber Group Limited company chairman Shen Jinrong also expressed concern.

He believes that domestic tire enterprises are facing unprecedented huge pressure, and if it is not good to highlight the siege, the overall advantages of Chinese tyres will be lost.

Over the years, the tire industry has repeatedly encountered difficulties and challenges. In Deng Yali's view, the situation this year is more complex and more severe than ever.

"The development of China's tire industry has come to a critical juncture." Deng Yali said.