Tyre market controlled by foreign investors
By Dai Yan (chinadaily.com.cn)
Updated: 2006-10-25 08:32 China's tyre industry is
almost completely controlled by foreign investors, a signal of danger for
domestic tyre manufacturers.
The accumulated amount of domestic semi-steel radial ply tyre output was 85
million in 2005, of which 70 percent were made by foreign-owned manufacturers
with a 20 percent increase in production. Although domestic manufacturers
accounted for nearly 80 percent of the all-steel radial ply tyre market,
foreign-owned tyre makers are expected to hold more with an increase of over 50
percent, according to Professor Chen Zhihong with the Beijing Research and
Design Institute of the Rubber Industry.
Multinationals comprise two thirds of domestic tyre manufacturers with an
annual production capacity of one million, of which most provide aircraft and
armored vehicle tyres for national defense use.
......
The full text is available in the October Issue of AutoChina. (For more biz stories, please visit Industry Updates)
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