As 2025 begins, several major tyre brands in China are implementing price increases, a move that reflects the growing pressures of rising raw material costs, escalating logistics expenses, and higher production outlays. The trend underscores significant changes in the market dynamics of one of the world’s largest tyre industries.
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The decision to raise tyre prices comes amid a challenging economic landscape for manufacturers. Key drivers include:
Market Outlook
Despite these challenges, the Chinese tyre market remains poised for robust growth, with a compound annual growth rate (CAGR) of 6.5% expected from 2020 to 2025. As demand surges, particularly in the automotive sector, price increases may persist, impacting manufacturers and consumers alike.
Why are tyre prices increasing in China?
Rising costs for raw materials, labour, logistics, and energy are the primary factors, alongside investments in new technologies.
What are the main materials driving the cost hike?
Natural rubber (18,845 yuan per tonne) and synthetic rubber are the main contributors.
What is the market forecast for Chinese tyres?
The market is projected to grow at a 6.5% CAGR from 2020 to 2025, though prices are likely to remain high.
Who is affected by these increases?
Both manufacturers and consumers are feeling the impact, with rising costs expected across the board.
