China two-wheel tire profits jump 46% in first half

Beijing – China’s motorcycle and bicycle tire industry recorded stronger production and profits in the first half of 2026, supported by motorcycle demand and growing exports.

Combined profits at 28 key manufacturers rose 46.5% year-on-year to Yuan307 million (€36.5 million), the two-wheeler segment within the China Rubber Industry Association (CRIA) announced 18 Sept.

However, the sector’s profit margin remained relatively low at 3.2%, compared with an average 5.82% across China’s rubber industry.

Sales within the increased 4.6% year-on-year to Yuan9.56 billion.

Motorcycle tire production increased 25.7% to 90.3 million units, while electric bicycle tire output rose 21.2% to 56.6 million units, said the CRIA unit.

By contrast, bicycle tire production fell 10.2% to 103.2 million units and combined inner-tube output declined 12.8% to 260.6 million units.

The association described the industry's first-half performance as characterised by “steady improvement in production, export growth against the trend, continued improvement in profitability and rising investment activity.”

Exports were particularly strong for motorcycle tires, which were up 10.2% year-on-year to 43.3 million units, with their value rising 13.1% to $394 million.

The association said overseas demand remained an “important pillar” of the industry and noted that motorcycle tire export volumes had reached record highs for three consecutive years.

For 2026 and the period ahead, CRIA expects conditions for expanding exports to remain “relatively favourable”, with electric bicycle tires potentially becoming “a new export growth engine”.

Motorcycle tire exports also have “some room for further growth” despite their already high base, it said, while bicycle tire exports could decline slightly amid weaker global bicycle demand.

Investment, meanwhile, is accelerating, with nearly 50 new-build and expansion projects launched across China's motorcycle and bicycle tire sector since 2025.

New capacity is concentrated mainly in Shandong, Hebei and Jiangsu, according to the association, which said the industry was experiencing a “new round of capacity expansion”.

Among the projects, Timsun Rubber Tire (Weihai) is building capacity for 12 million high-performance green radial motorcycle tires per year, with production expected to start in 2027.

The association, however, warned of “low-level, homogeneous and repetitive construction” in some regions.

“If blind expansion continues,” it said, this could increase “periodic overcapacity pressure” and undermine industry profitability and higher-quality development.

Looking ahead, the association said it expected competition to shift away from price-based rivalry towards “innovation, quality, brand and service”.