The demand for replacement of car tires has given rise to a huge replacement market and benefited from the growth of car ownership. The global tire market size has exceeded one trillion yuan, and demand is expected to continue to be released in the future. In terms of transactions, overseas tire giants have a significant competitive advantage, with market share and brand premium far exceeding domestic tires.

At present, the competitive landscape in the industry is undergoing changes: Against the backdrop of increasingly prominent profit pressures for downstream vehicle enterprises, domestic tires are rapidly penetrating the supporting market through their product cost-effectiveness advantages. In the medium to long term, penetrating the supporting market is beneficial for enterprises to deeply cultivate their replacement market, thereby enjoying the high brand premium and stable demand in the replacement market, and is expected to open up long-term growth space.

The following is an excerpt from the report