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Recently, Jiangsu General Technology Co., Ltd. will soon be listed on the Shanghai Stock Exchange.
This is the third tire company listed in China since 2016. 
On July 6th and September 9th, Linglong tires and triangle tires were listed on the Shanghai Stock Exchange. Both companies are from Shandong, a major province of tire production.
In such a short period of time, three tire companies have been listed for trading. This has caused widespread concern for the domestic tire industry.
<br> <br> steady development of industry data show that over the past five years, Chinese tire industry overall productivity and income growth has slowed.
However, the reporter found that this did not change the reality that the entire tire industry in China is still developing steadily.
According to statistics from China National Automobile Industry Association and China Rubber Industry Association Tire Branch, from 2001 to 2015, the annual average compound annual growth rate of domestic automobile production and sales reached 18.37% and 18.23%, respectively, and the average annual compound growth rate of automobile tire production during the same period was also It reached 14.55%.
At the same time, as the development of the global auto industry tends to be stable, China’s tire export volume will increase year by year, accounting for about 50% of the total output.
According to analysis, the rapid development of the Chinese tire export market is closely related to the stable development of the domestic economy and the automotive industry.
As the demand in the domestic market continues to increase, the global tire industry has shifted its influence to China. In recent years, the scale of production in the Chinese tire industry has expanded rapidly and China has also become a world leader in tire production.
According to statistics, as of 2015, China’s annual tire production reached 565 million, ranking first in the world.
At the same time, among the top 75 global tire companies, Chinese companies accounted for nearly half, reaching 34.
Among the tire companies listed this year, Triangle tires ranked 15th in the world, and Linglong tires ranked 20th, ranking among the top 3 domestic tire manufacturers (excluding Pirelli just merged by Chinese companies).
Unprepared changes
However, things suddenly changed.
People have found that since 2014, domestic tire companies have begun to complain.
One of the important reasons for this is that the tire industry has turned profits from profits into a "normal state."
In the past few years, tire companies that had grown at a rate of more than 60% or more have generally experienced a decline in sales revenue.
The domestic macroeconomic adjustment, coupled with the “normal†growth rate of the automotive industry, has made the tire industry in the industry chain significantly affected.
When most companies have just adjusted their mentality and gradually accept this "normality," they suddenly discovered that the tireless export market of tires in the past years has begun to face heavy losses.
With the United States as the lead, more and more countries have joined the ranks of anti-dumping and countervailing subsidies for Chinese tires. Under the double bombardment of various countries, the volume of Chinese tire exports fell.
Although more and more companies have stepped into the ranks of the world's top 75, people have to admit that Chinese tire companies are not strong enough, and more companies participate in market competition by playing “price warsâ€.
According to statistics, the sales revenue of China's top three tires has just exceeded the fifth place in the world.
Blind investment coupled with local protection has led to an oversupply of production capacity in this industry, especially a serious excess of low-end production capacity.
And in stark contrast to the number of companies and their capacity, Chinese tires lack a strong and well-known brand. In the case of product performance and quality is not inferior to foreign brands, the market prices are quite different.
According to analysis by industry insiders, under the above background, the domestic tire backbone enterprises rushed to market. On the one hand, they solved the capital problems needed for market expansion. On the other hand, they also accelerated the rapid integration of financial capital and industrial capital.
This provides important foundations and prerequisites for Chinese tire companies to go global with branding.
Domestic tire companies vie for market