Update: Tariff-hit Chinese tire makers to “intensify” EU trade

London – Chinese tire makers will seek to increase trade with Europe following the imposition of tariffs on their imports to the US, believes Hans-Jurgen Dreschler, chief executive officer of the BRV.

“In general, we assume that they [the Chinese] will try to intensify sales in Europe,” said the German tire association leader – though he does not expect this to affect the European market in the near term.

The EU and the US markets, Dreschler explained, have “complete different” market of cars, so the tires used are different with regards to dimensions.

“We do expect, however, that the tire manufacturers in China will shift their supply in the medium run – regarding the dimensions needed in Europe,” he added.

This development, he noted, would affect the European tire market.

Asked whether the EU might follow the US in imposing tariffs, the BRV leader commented: “Whether Europe will take similar measures to counter Chinese competition, can’t be seen at the moment.”

Meanwhile, the head of the European Tyre and Rubber Manufacturers Association (ETRMA), Fazilet Cinaralp, has said that more times needs to laps before deciding whether US tariffs on Chinese tires will have an effect on the EU market.

“This is a good question. However it is still too early to already note the effect of those preliminary duties which were only taken in December,” said Cinaralp in correspondence with ERJ.

The US Department of Commerce levied duties of 19.17 percent and 36.26 percent on Chinese tires in December 2014. Also, it set a 87.99-percent China-wide rate for any company not previously listed.

While an immediate influx of Chinese tires might not be expected in the EU, Eurostat numbers support the view that tire makers in China are setting their sights on the market.

The latest figures by Eurostat – October 2014 -  show a steady increase in year-on-year imports of Chinese tires coming into the EU.

Chinese passenger car tire imports rose to just under 46 million tires in 2013, from 42 million the previous year. By October 2014, the figure rose to over 48 million.

Similar growth can be seen in the light truck and truck tire markets, with truck tire import showing the largest growth in 2014, rising to 3 million from 1.99 million the previous year.