China Tire Market, By Design (Radial, Bias), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Medium, and Heavy Commercial Vehicles, Two Wheelers, Three Wheelers, Off-The-Road (OTR)), By End-User (OEM, Replacements), By Distribution Channel (On

China Tire Market, By Design (Radial, Bias), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Medium, and Heavy Commercial Vehicles, Two Wheelers, Three Wheelers, Off-The-Road (OTR)), By End-User (OEM, Replacements), By Distribution Channel (Online Distributors, Offline Distributors)Trend Analysis, Competitive Market Share & Forecast, 2018-2028

China Tire Market is Growing Steadily Despite the Pandemic: Projected to Grow at a CAGR of 6.4% during 2022-2028

The China tire market is growing at a high CAGR because of the expanding automobile manufacturing in the country. Additionally, the increasing disposable income and purchasing power of Chinese people is also influencing the domestic sales of automobiles, especially passenger cars…

A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the China tire market was worth USD 29.0 billion in the year 2021. The market is estimated to grow at a CAGR of 6.4%, earning revenue of around USD 44.8 billion by the end of 2028. China’s tire market is flourishing at a high rate owing to the growing automobile production activities. China is the major automobile manufacturer in the world in terms of annual production. China is expected to produce 35 million automobiles by 2025, which will fuel the market demand for tires during the forecast period. Further, rising vehicle ownership for both private and commercial purposes is expected to drive the growth of China tire market during the forecast period. However, increasing penetration of counterfeit and second-hand tires in the market may act as a huge restraining factor for market growth.

Increasing Vehicle Ownership in China Projected to Drive the China Tire Market

In China, vehicle ownership is increasing rapidly due to the rising disposable income and the availability of low-priced vehicles due to lower production costs. According to the Ministry of Public Security, over 16 million passenger cars were registered during the first quarter of 2021. The national motor vehicle ownership also spiked to 390 million units by September 2021, including 297 million cars. With the increasing demand for vehicles, the demand for tires is also projected to surge in China during the forecast period.

Expanding Online Sales Channels Boosting the Growth Of the China Tire Market

The China tire market is quickly shifting towards online sales channels, especially after the COVID-19 pandemic outbreak. The restrictions on distribution channels due to lockdown prompted the tire sellers and buyers to shift and browse through online channels. Furthermore, most popular websites such as Alibaba, etc., offer a wide range of products, along with a lot of information about tires, which helps the buyers to make their final decision, based on their needs and budgets. Moreover, the Chinese tire market is expected to benefit from the flourishing online sales channels during the forecast period.