The remarkable progress of China's automotive industry has culminated in the development of a significant tires subsector. Following China's accession to the WTO in late 2001, the growth rates for both sectors accelerated. To fulfill its ambition to become the main base of operations for leading foreign auto companies, it is imperative that China develop a world-class tires industry.
To become a leading player in the global tire industry, it is imperative that domestic tire companies rectify these weaknesses by developing more sophisticated production techniques. China has also taken up steps to produce products that are higher up the value chain. For instance, the country is now encouraging the production of radial tires1 by promising the waiver of the 10% excise tax for radial tire products. Many domestic companies are also forming strategic alliances with multinationals to acquire greater expertise in production, distribution and marketing.
This market research report addresses issues of interest to investors, presents our main survey and research findings, and analyzes legal and production aspects. It concludes with a look at future developments in this key industry. A directory of useful contacts appears at the end.
