Time:07-05-2013

Chinese Tire enterprises don’t have strong capability of bargaining with both upstream and downstream in China. They face squeeze between materials of upstream and OEMs of downstream. With the increasing labor cost, only if enterprises enter high-end tire market, their net profit rate can be improved fundamentally. Product development and quality brand are indispensable core competence. In recent years, European Union launches many technical barriers to trade, including Moter Vehicle Safety Regulations, REACH Regulations and Tire Labeling Regulations, all of these increase the cost and difficulty of tire exporting. At the same time, USA, Brazil, Thailand, Colombia, Mexico and other countries also launch anti-dumping investigation to China tires. After the primary stage of low-end manufacturing and OEM, tire enterprises face the key issue of speeding up to enter high-end market, enhancing private brand development and improving product added value.

 

In the future, GENCO will play a role in technological innovation to improve the following items, such as material and formula used in production, environmental performance and quality of the product. We will also enhance brand consciousness, focus on building international famous brand and increase product added value, then upgrade from price war to brand war. On the second hand, we will pay attention to the change of natural rubber market and take part in establishment of rubber stabilization fund and domestic rubber resource adjustment system. Then we can buy low and sell high through market, establish business inventories to stabilize market price fluctuations, and grasp price initiative of the industry. On the Third hand, we will seize the opportunity of transformation and upgrade of China tire industry to promote structural adjustment, implement low-carbon economy strategy, motivate green tire industry development, and transform from factor intensity mode to technology driven mode smoothly.