“Chinese manufacturers are also gaining popularity among global top clients,” said Mesnac’s vice president Guan Bingzheng during his speech at the China Rubber Conference held in Guangzhou this March.
Despite a drop in China’s tire production and sales in 2018 – for the first time over the past 28 years – Guan believes the country’s car parc will stabilise at 600 million at least, compared with today’s 230 million.
Annual tire demand in the country will peak at 1.5 billion units, compared with its 700 million units total designed annual capacity in 2018.
The sector is becoming increasingly concentrated, said Guan, with revenue of the top ten Chinese rubber machinery makers’ accounting for 89% of the country’s total in 2018 – compared with an 83% share just a year ago.
Guan, however, conceded that there remained technology significant gaps between Chinese manufacturers and global leaders.
“We are particularly lagging behind in extrusion, calendering and cutting equipment,” the Mesnac vice president commented.