On August 24, on the “Cutting-edge Technology Forum for the Rubber Industry & 2017 Release Conference for the Ranking of Chinese Tire Companies” held in Tongling, Anhui by China Rubber periodical office of China Rubber Industry Association, the China Rubber periodical office and the Tire Branch of China Rubber Industry Association officially released the “2017 Ranking List of Chinese Tire Companies”, the “2017 Ranking List of Chinese Tire Companies at Home”, and the “2017 Ranking List of Patents of Tire Companies”.

This year saw major changes in the ranking of Chinese tire companies with large numbers of both new companies appearing on the list and other ones quitting the list, which highlighted the changes of Chinese tire companies during restructuring and transformation.

Changes of tire companies participating in the ranking

Firstly, the total number of tire companies participating in the ranking increased. In 2016, 54 Chinese and foreign tire companies in total participated in the ranking. In 2017, the total number increased by three to 57.

Secondly, there are 11 companies that participated in the ranking last year but did not show up this year: Shengtai Group Co., Ltd., Shandong Yongtai Group Co., Ltd., Qingdao Yellow Sea Rubber Company Limited, Weifang Shunfuchang Rubber and Plastic Co., Ltd., Shandong Yongsheng Rubber Group Co., Ltd., Shandong Three Group Rubber Co., Ltd., Dalian Tyre Factory Co., Ltd., Xuzhou Xugong Tyres Co. Ltd., Shandong Huge Rubber Co., Ltd., Shandong Hengyu Rubber Co., Ltd. and Weihai Ping’an Tyre Co., Ltd.

These companies did not participate in the ranking of this year due to various reasons of their own. For instance, the data of Yellow Sea Rubber this year was uniformly declared by AEOLUS Tyre due to its enterprise integration; Shandong Yongtai was entrusted to Huasheng; Shengtai was restructured with Xingyuan; Shandong Hengyu was uniformly declared by its parent company Shandong Hengyu Technology Group; Xuzhou Xugong did not participated in the ranking this year because it did not declare its data before announcement. Its sales revenue in 2016 was RMB 1.661 Billion Yuan; others did not participate in the ranking due to problems concerning market and capital.

Thirdly, 14 new companies appeared in the ranking this year: Michelin (China) Investment Co., Ltd., Triangle Tire Co. Ltd., Shandong Wanda Baotong Tire Co., Ltd., Jiangsu Risingsun Tire Co., Ltd., Shandong Hengyu Technology Group, Shandong Yongfeng Tire Co., Ltd., Shandong Huasheng Rubber Co., Ltd., JianXin Tire (Fujian) Co., Ltd., Tianjin Wanda Tyre Group Co., Ltd., Qingdao Qihang Tyre Co., Ltd., Jiangsu Hua’an Rubber Technology Co., Ltd., Shandong Jinwangda Tire Co., Ltd. Henan Shengbang Tire Co., Ltd. and Jiangsu Topower Wheel Co., Ltd. 

Table 1: 2017 Rank List of China Tire Enterprises (Top 10) 

Note: Including overseas factories' sales revenue of Chinese tire enterprises. 

Changes in the Ranking of Chinese Tire Companies

The “2017 Ranking List of Chinese Tire Companies” is a ranking on Chinese Tire Companies, which is based on companies’ total sales revenue (including export) of companies both in mainland China and overseas. The “2017 Ranking List of Chinese Tire Companies at Home” is a ranking on all tire companies (including foreign-funded companies) that have set up factories in mainland China, which is based on plants’ sales revenue (including export) of their factories in mainland China.

Compared with the 2016 Ranking List of Chinese Tire Companies, major changes appeared in the ranking of 2017.

Zhongce Rubber took the lead with RMB 20.78 Billion Yuan and remained at the top. While the 2015 sales revenue data of Xiamen Zhengxin had included only one factory in Xiamen, its 2016 data included the gross sales revenue of factories that Zhengxin set in the mainland China. Thus its sales revenue increased significantly to rank the second from the fourth. Linglong Tire dropped to the third place from the second. Sailun Jinyu rose to the fourth place from the sixth thanks to the revenue increase of its factories both at home and abroad. The 2016 data of Doublestar Group rose remarkably compared with last year as it included the sales revenues of its branches and OEM factories, pushing its ranking to the fifth place from the tenth. Owing to integrating Qingdao Yellow Sea and Chonche Auto Double Happiness, AEOLUS Tyre ranked up to the sixth place from the eighth. Triangle Tire ranked the seventh. As it had not participated in the ranking last year, it used the annual report data of the listed company as its data this year. On account of the statistical method, the 2016 data of Xingyuan Tire fell slightly compared with last year, and its ranking dropped to the eighth place from the fifth. While the 2015 data of Shandong Hengfeng had included Shandong Hengfeng, Shandong Changfeng and Shandong Yongfeng, its 2016 data included only Shandong Hengfeng and Shandong Changfeng with Shandong Yongfeng participating in the ranking separately. Therefore, the ranking of Hengfeng went down to the ninth place from the third. Double Coin Tyre saw a slight decline in its sales revenue, ranking down to the tenth place from the seventh.

Some other companies also underwent major changes, such as Ningxia Shenzhou which rose significantly this year to the 41st place compared with the 51st place last year as it was just put into production in June 2015.

Take the top 10 companies as an example. See Table 2 for changes of the Ranking List of Chinese Tire Companies at Home. The causes for the changes in ranking are as stated above. 

Table 2: 2017 Rank List of Chinese Domestic Tire Enterprises (Top 10) 

Note: excluding overseas factories' sales revenue of Chinese tire enterprises. 

2017 Rank List of Chinese Tire Enterprises 
Published by China Rubber journal agency and Tire Branch of China Rubber Industry Association 

Note: The ranking is for Chinese tire enterprises, based on mainland China factories and overseas factories 2016's sales revenue (including exports).

2017 Rank List of Chinese Domestic Tire Enterprises
Published by China Rubber Journal Agency and Tire Branch of China Rubber Industry Association 

Note: The ranking is for all tire enterprises (including foreign companies) that have factories in mainland China, based on mainland China factories 2016's sales revenue (including exports). 

Changes in ranking highlighting the restructuring and transformation of the industry

Two conclusions can be drawn from the analysis of the ranking: First, the tire industry of China is currently in a turning period of merging and restructuring as well as transformation and upgrading. Henceforth, it will become a normal for the tire industry of China to go global, to undergo merging and restructuring as well as to achieve the international development strategy. Second, the tire industry is still confronted with grave circumstances at home and abroad in addition to fierce competition in both domestic and foreign sales markets. Many companies are facing huge pressure of operation and capital chains.

As a result, in a period from now on, it won’t be a surprise to see Chinese tire companies to change names, change subordination relationship, withdraw from the market, etc. The activity of “ranking Chinese tire companies” can provide an epitome of the reform and transformative development of the tire industry from another side.