Chinese Markets for Tires

SUMMARY

Report Scope and Methodology

This report examines China's macroeconomic trends, investment environment, tire industry structure and capacity, production and demand, end-use market consumption trends, distribution channels and principal industry participants. Long-term forecasts for major tire production and demand are included. Key producers are profiled. Top Chinese tire producers are listed in the producer directory section.

Most primary and secondary research was done in China in order to access up-to-date government regulations, market information and industry data. Data was collected from the Chinese government publications, Chinese language newspapers and magazines, Chinese chemical industry associations (including Chinese tire industry associations, local governments' chemical industry bureaus), tire industry publications, and our in-house databases. Interviews were conducted with Chinese industry experts, university professors, and tire producers in China.

Historical data include 1996, 2001 and 2006. Longterm development trends are projected to the years 2011 and 2016. Economic models and quantitative methods are applied in this report to project market demand and industry trends. Metric system is used and values are presented in either yuan (RMB, current price) and/or US dollars. Exchange rate for 2006 is based on the annual average rate (7.9 yuan per US dollar). The word "demand" is used interchangeably with "consumption". Totals may not add due to rounding.

Executive Summary

China has experienced over two decades of high economic growth, which has been stimulated by the consecutive increases of industrial output, consumer consumption and capital investment. China's GDP has been growing at 11% per annum. National industry output has been advancing at 10.3% annually and will continue to sustain a strong growth into the next decade. The fast-growing middle class is creating an enormous consumer society. As the fastest-growing economy in the world, the emerging market has attracted the attention of investors and corporations around the world for the last two decades.

To deepen the reform of state-owned enterprises is a long-term task and needs great efforts. The reform of state-owned economy has witnessed rapid changes in both economic and social aspects. The introduction of foreign advanced technology and capitals will continue to be favored by the Chinese government and business community. New ways will be adopted to utilize foreign investment, including mergers, acquisition, and investment funds and securities investment. China will continue to improve its investment environment in the areas of legal system, intellectual property protection, foreign trade and investment regulation, infrastructure and financial system. China is the second largest foreign investment recipient after the United States in the world today. Given its vast market, the country provides tremendous opportunities for investment and trade both for the present and future.

TABLE OF CONTENTS

I. INTRODUCTION

• Report Scope and Methodology
• Executive Summary

II. BUSINESS ENVIRONMENT

• Economic Outlook
  • Key Economic Indicators
  • Industrial Output
  • Population and Labor
  • Foreign Investment
  • Foreign Trade
• Financial and Tax Regulations
  • Banking System and Regulations
  • Foreign Exchange
  • Taxes, Tariff and Custom Duties

III. TIRES INDUSTRY ASSESSMENTS

• Tires Industry Capacity
• Major Producer Facility Locations, Output and Capacity
• Market Share of Key Producers
• Potential Entrants
• Major Foreign Investments
• Technology Development

IV. TIRES PRODUCTION AND DEMAND

• Overview
• Tires Raw Materials Production and Consumption
  • Natural Rubber
  • Synthetic Rubber
  • Rubber Exports and Imports
• Tires Production and Demand
  • Automobile Tires
  • Motor Cycle Tires
  • Bicycle Tires
  • Other Vehicle Tires
• Tire Production and Demand by Type
  • Redial Tires
  • Other Tires
• Tires Imports and Exports
• Pricing Trends

V. TIRES CONSUMPTION BY MARKET

• Tires Markets Outlook Overview
• Automobiles
  • OEM Automobile Production
  • Tires Consumption in OEM Automobiles
  • Automobile in Use
  • Tires Consumption in Automobile Tire Replacement Market
• Motor Cycles
  • OEM Motor Cycles Production
  • Tires Consumption in OEM Motor Cycles
  • Motor Cycles in Use
  • Tires Consumption in Motor Cycles Tire Replacement Market
• Bicycles
  • OEM Bicycles Production
  • Tires Consumption in OEM Bicycles
  • Bicycles in Use
  • Tires Consumption in Bicycles Tire Replacement Market
• Other Vehicles
  • Other Vehicle Market Outlook
  • Tires Consumption in Other Vehicle Markets

VI. MARKETING STRATEGIES

• Distribution System in China
  • China's Distribution System
  • Tires Distribution Channels
  • Transportation and Freight Infrastructure
  • Communications
• Market Entry Channels
  • Exporting to China
    • Export Market Overview
    • Chinese Trading Practice
    • Chemical Trade Companies
    • Import Restrictions in China
  • Technology Licensing
    • Technology Licensing Overview
    • Intellectual Property Protection
  • Joint Venture
    • Joint Venture Overview
    • Advantages and Disadvantages
  • Wholly Owned Enterprises
    • Foreign Wholly Owned Enterprises Overview
    • Advantages and Disadvantages
  • Other Market Entry Channels
    • Setting up Sales Offices
    • Selling to China Through Attending Trade Fairs
    • Contacting Chinese Companies
    • Advertising
• Market Entry Strategies
  • Understanding Differences
  • Business Practice Differences
  • Knowledge of Regulations and Restrictions
  • Dealing with Governments

VII. TIRES PRODUCER DIRECTORY

• Tires Producer Profiles
• Research Institutions and Associations

LIST OF TABLES

I. INTRODUCTION

• Economic Outlook Summary
• Tires Supply and Demand Summary

II. BUSINESS ENVIRONMENT

• Key Economic Indicators
• Industrial Output
• Population and Labor Force Trends
• Foreign Investment and Loans
• Foreign Trade

III. TIRES INDUSTRY ASSESSMENTS

• Tires Industry Capacity
• Major Producer Facility Locations
• Major Tires Producer Output and Capacities
• Market Share of Key Producers
• Major End-Users
• Major Foreign Investments

IV. TIRES PRODUCTION AND DEMAND

• Total Tires Production and Demand
• Tires Raw Materials Production and Consumption
  • Natural Rubber
  • Synthetic Rubber
  • Rubber Exports and Imports
• Tires Production and Demand
  • Vehicle Tires
    • Automobile Tires
    • Motor Cycle Tires
    • Bicycle Tires
    • Other Vehicle Tires
• Tire Production and Demand by Type
  • Redial Tires
  • Other Tires
• Tires Imports and Exports

V. TIRES CONSUMPTION BY MARKET

• Total Tires Consumption by Market
• OEM Automobile Production
• Tires Consumption in OEM Automobiles
• Automobile in Use
• Tires Consumption in Automobile Tire Replacement Market
• OEM Motor Cycles Production
• Tires Consumption in OEM Motor Cycles
• Motor Cycles in Use
• Tires Consumption in Motor Cycles Tire Replacement Market
• OEM Bicycles Production
• Tires Consumption in OEM Bicycles
• Bicycles in Use
• Tires Consumption in Bicycles Tire Replacement Market
• Other Vehicle Market Outlook
• Tires Consumption in Other Vehicle Markets

LIST OF CHARTS

• Tires Production and Demand Summary
• China's GDP and Industrial Output
• Industrial Output by Ownership
• Foreign Investments and Loans
• China's Imports and Exports
• Tires Capacity in China
• Tires Capacity, Output and Demand
• Tires Production
• Tires Exports and Imports
• Tires Demand by Market in 2008