Chinese Tire Production Continues to Grow

If you've been thinking that China is currently the fastest growing market only when it comes to the automotive industry, you're damn wrong. Because China continues to grow in almost every single segment of the industry and, according to official data, the country is also recording a significant boost in tire production.

If we are to trust the China Rubber Industry Association, the tire output is likely to reach 420 million units this year, which is significantly higher than last year's figures. In fact, this is a 10.5 percent increase to be more precise, but things aren't all milk and honey.

It appears that companies involved in this particular sector are trying to find a way to deal with high rubber prices while, at the same time, they are hoping to beat last year's production figures. Of course, this aspect affects the final profit but, given the impressive increase the industry has the ability to record, rubber prices might be a little bit "encouraged" by the government to adopt a descending trend.

Just to give you an idea on the way the Chinese tire industry performs, we should mention that the country rolled off the production lines a total of 380 million units in 2009, but officials have much higher expectations.

Although they hope to produce as much as 420 million units this year, output is expected (to be read "forced") to reach around 570 million units by the end of 2015. It this possible? We'd say yes, mostly if we're taking into account the huge boom the country is experiencing these days when most carmakers are moving their operations in the country.