Standing at the threshold of 2025, the global truck tire industry is experiencing an unprecedented period of profound adjustment. Tariff barriers, technological innovation, and green transformation—these keywords are redefining what appears to be a traditional yet highly volatile sector. For every freight operator, tires represent far more than a combination of rubber and steel; they are intrinsically linked to operating costs, safety assurance, and the efficiency of the entire logistics ecosystem.

Tariff Storm Sweeps Global Markets

In early 2025, a "butterfly effect" triggered by trade policies continues to ferment across the global truck tire market. The U.S. government's reciprocal tariff policy, imposing a 25% import duty on all automotive components, has fundamentally altered the established landscape of global tire trade. The impact of this policy far exceeds initial expectations, affecting not only Chinese domestic exports but also the Southeast Asian production bases that Chinese enterprises have painstakingly cultivated over the past decade.

From specific data perspectives, in the first two months of 2025, U.S. tire imports totaled 44.51 million units, declining 1.7% year-over-year. Notably, truck and bus tire imports fell 4% to 9.69 million units, with the decline significantly exceeding the overall level. This reflects the greater trade pressure being borne by the commercial vehicle tire market.

Thailand, as the largest source of U.S. tire imports, faces a particularly difficult situation. Passenger car tires must bear anti-dumping duties ranging from 1.2% to 4.52%, compounded by the new 25% tariff—a double blow that has nearly eliminated export profit margins. Vietnamese tire companies similarly face the stacking effects of countervailing duties ranging from 6.23% to 7.89% alongside the new tariffs. Cambodia, Thailand, and Vietnam—Southeast Asian production bases once regarded as "tax havens"—have now become new disaster zones under tariff pressure.

More severely, the European Union market is also tightening policies. In January 2025, the European Commission announced an extension of the "double anti" regulations on Chinese truck and bus tires, meaning Chinese-exported truck and bus tires will continue to face high double anti-duties. In May, the EU initiated anti-dumping investigations on Chinese passenger car and light truck tires, having already covered truck and bus tires previously. Regarding the South American market, Brazil extended trade barriers in July, continuing to impose anti-dumping duties on certain Chinese tires.

Faced with this situation of being "besieged on all sides," the overseas production capacity network that Chinese tire companies spent a decade building now faces the risk of marginalization under global tariff policy coverage. The "spatial strategy" of avoiding tariffs through overseas factory construction appears increasingly difficult to sustain under the new trade environment.

Domestic Market Differentiation and Restructuring

While overseas markets encounter headwinds, China's truck tire market presents a landscape of stark contrasts. On one hand, overall demand is recovering; on the other, market structure is undergoing profound changes.

In April 2025, China's rubber tire outer tire production reached 102.002 million units, growing 3.1% year-over-year. Cumulative production from January to April reached 385.58 million units, up 3.7% year-over-year. Export data is equally impressive: in the first four months, China's cumulative rubber tire exports reached 3.03 million tons, growing 6.2% year-over-year; export value reached approximately 53.879 billion yuan, up 6.6% year-over-year. New pneumatic rubber tire exports numbered 226.81 million units, growing 8.3% year-over-year.

Behind these figures lies the continued expansion of Chinese tire industry's share in the global market. However, growth in production and exports has not fully translated into increased corporate profits. First-quarter 2025 financial reports show that except for one tire-listed company whose net profit increased slightly by 0.46%, all other companies experienced varying degrees of net profit decline. This phenomenon of "growing revenue without growing profit" is triggering deep reflection within the industry.

The performance of the all-steel tire market particularly warrants attention. Affected by the slowdown in global and domestic infrastructure projects, all-steel tire demand has contracted. Over the past two years, influenced by infrastructure industry weakness and the pandemic, domestic passenger and freight volumes declined significantly, compounded by the formal implementation of the National VI emission standards for heavy trucks, commercial vehicle production and sales plummeted. In 2022, Chinese commercial vehicle production fell 32% year-over-year to 3.184 million vehicles, with all-steel tire operating rates once below 50%.

However, as post-pandemic travel returns to normal, domestic road freight and passenger volumes are gradually recovering. As of December 2023, domestic road freight volume increased 7.5% cumulatively year-over-year, with passenger volume up 62.6% year-over-year. Commercial vehicle production and sales also recovered significantly, with cumulative year-over-year increases of 27% and 22% respectively by the end of 2023. This recovery trend brings new hope to the all-steel tire market.

Current domestic tire market polarization is becoming increasingly severe. The semi-steel tire market continues to grow driven by consumption downgrading both domestically and internationally, as well as Chinese automobile sales growth, while the all-steel tire market faces demand contraction due to infrastructure project slowdowns. This differentiation requires companies to more precisely grasp market pulses and adjust product structures.

Technological Innovation as Key to Breaking Through

Under dual pressures of trade barriers and market competition, technological innovation is becoming the key for Chinese truck tire companies to break through. Multiple leading companies are attempting to shatter the stereotype of "low price, low quality" through technological upgrades, launching assaults on high-end markets.

Zhongce Rubber released its independently developed "Tiangong Commercial Vehicle Tire Technology System" in 2024. This system relies on three core technological frameworks: the Tiangong Black Gold material technology system, the Tiangong Xuanjia structure technology system, and the Tiangong Zaoyi intelligent manufacturing technology system. Through the integration of 6-dimensional performance and 9 core technologies, it comprehensively enhances commercial vehicle tire performance in four key areas: wear resistance, low heat generation, handling, and load resistance. The release of this technology system is viewed by the industry as a major breakthrough in China's tire company basic research systems, breaking the nearly century-long monopoly of European and American tire industry giants in technological frameworks.

Sailun Group is renowned for its "Liquid Gold Tire" technology. Tested by the international authoritative third-party testing institution TÜV SÜD, both its semi-steel and all-steel tires achieved the highest grades of EU labeling regulations and the Chinese Rubber Industry Association's "Tire Grading Standards." Liquid Gold Tires solved the "devil's triangle" problem that has plagued the tire industry for a century—the balance between rolling resistance, wet grip performance, and wear resistance—enabling tires to simultaneously achieve greater safety, energy efficiency, and durability.

Sailun has also mastered core technology for giant engineering radial tires, achieving industrialization of the complete series from 49 inches to 63 inches. In 2024, Sailun's tire production and sales both reached historic highs, totaling 74.8111 million and 72.1558 million units respectively, with growth rates of 27.59% and 29.34%. In the second quarter of 2025, the first tires rolled off production lines at Sailun's Indonesian and Mexican overseas factories, with capacity gradually being released, expected to drive continued strong performance throughout 2025.

Linglong Tire continues its vigorous push in technological innovation. The company's R&D investment ratio leads world-class brands, with its controlling shareholder Linglong Group investing in and collaborating with Spain's IDIADA to operate China's first world-class comprehensive large-scale tire test site—the Central Asia Tire Test Site. In 2024, Linglong Tire's sales grew 13.28% year-over-year, making it the fastest-growing company in the 11th to 20th position range among the global tire Top 20.

Fengshen shares focuses on the niche market of giant engineering radial tires. In 2025, the company disclosed plans for directed issuance of A-shares to support the expansion and efficiency improvement project for high-performance giant engineering radial tires. Company representatives stated that giant engineering radial tires are in a state of supply shortage. Engineering giant tires represent a niche market with extremely high requirements for tire load capacity and wear resistance, previously dominated by foreign manufacturers. Currently, the all-steel giant engineering radial tire market is primarily occupied by the three major international brands: Michelin, Bridgestone, and Goodyear, with Chinese manufacturers working to increase market share.

Green Transformation Imperative

Beyond performance enhancement, sustainable development is becoming a new topic for the truck tire industry. As governments worldwide accelerate decarbonization in the transportation sector, tires are no longer viewed as incidental emission sources but are gradually being incorporated into stricter regulatory frameworks.

The EU's Euro 7 emission regulations will phase in the world's first tire wear particulate emission limits starting in 2028. Simultaneously, the EU Commission's "Ecodesign for Sustainable Products Regulation" (ESPR) introduces a digital product passport mechanism, establishing a digital traceability framework covering the full lifecycle for high environmental impact products including tires.

China released tire product carbon footprint quantification group standards in 2024, accelerating construction of a national-level product carbon footprint management system, guiding companies to quantitatively manage carbon emissions across all links including raw material acquisition, production, transportation, use, and recycling.

At the raw material level, high-performance tire manufacturing is rapidly moving away from traditional petroleum-based materials. Sustainable procurement of natural rubber is shifting from ordinary cultivation toward FSC certification systems. In a report released in 2025, business consulting firm 360iResearch pointed out that the tire industry is gradually adopting bio-based rubber, recycled rubber, advanced fillers and other sustainable materials on a large scale to respond to global environmental regulations, carbon neutrality goals, and supply chain green transformation trends.

Alternative fillers like rice husk ash silica are being applied at scale in ASEAN regions, with material systems derived from vegetable oils, bio-based polymers, and dandelion-derived rubber also receiving government subsidies and industry capital support. These innovative materials not only reduce dependence on petroleum resources but also significantly reduce carbon emissions during production.

The rapid growth of new energy vehicles further accelerates green tire market demand. According to reports released by the International Energy Agency (IEA), global electric vehicle sales are expected to exceed 20 million units in 2025, accounting for over 25% of new vehicle sales that year. Electric vehicles are heavier, have greater torque, and have stricter requirements for noise reduction and rolling resistance, making tires an important factor in electric vehicle range efficiency. Green tires are no longer an added value but are gradually becoming market access thresholds.

Capacity Expansion and Overseas Layout

Faced with a complex international trade environment, Chinese truck tire companies have not halted expansion but are accelerating capacity construction and overseas deployment.

Since 2022, Zhongce Rubber has accelerated capacity boundary expansion through acquisitions and global capacity expansion. The 25 million high-performance semi-steel radial tire project in Jintan Economic Development Zone, with an investment of 5.422 billion yuan, became a key provincial-level project in Jiangsu Province's automotive and parts category for 2025. In December 2024, Phase I of Zhongce Rubber's Indonesian MTI company officially commenced production, with a planned investment of $280 million, expected to achieve annual sales of approximately 5.2 billion RMB upon completion. The Mexican factory was also officially inaugurated, with simultaneous expansion and upgrades at Tianjin, Jintan, Dajiangdong, and Fuyang factories.

In June 2025, Zhongce Rubber officially listed on the Shanghai Stock Exchange main board, becoming another private tire giant to land on A-shares after Sailun. Funds raised after listing will further support implementation of its globalization strategy.

Linglong Tire's European factory officially commenced production at the end of 2024. This project, initiated in 2019 with a total investment of $990 million, is designed for annual production of 13.62 million high-performance radial tires. In August 2024, Linglong Tire announced plans to commence Phase II project construction in January 2025, adding annual production of 1.1 million various high-performance radial tires, including 800,000 commercial vehicle tires, 50,000 engineering radial tires, 150,000 agricultural radial tires, 100,000 retreaded tires, plus liquid reclaimed rubber and photovoltaic power generation projects. Additionally, Linglong submitted a prospectus to the Hong Kong Stock Exchange, planning to list in Hong Kong, with part of the raised funds to be used for Phase I of the Brazil factory project.

Sailun Xinhepin (Shenyang) Tire Co., Ltd. completed equity transfer with Bridgestone in July 2025, with Sailun taking over Bridgestone's Shenyang factory. The new factory plans to construct an annual production project of 3.3 million all-steel radial tires and 20,000 tons of off-road tires, which upon completion will meet domestic and international commercial vehicle market demands. This acquisition not only added capacity for Sailun but also acquired Bridgestone's technological accumulation in the commercial vehicle tire field.

Guizhou Tire is orderly advancing the intelligent manufacturing project for 380,000 all-steel engineering radial tires annually. Phase I annual production of 200,000 units reached predetermined usable status in 2024, while Phase II annual production of 180,000 units is under construction, expected to reach predetermined usable status on July 30, 2025. The company's Vietnam 6 million semi-steel tire project strives to achieve production line breakthrough in 2025, with sales realization in Q1 2026.

Notably, Haian Rubber listed on the main board in November 2024, setting a record for the highest stock price in China's tire industry on listing day. After listing, Haian Rubber added the "China-Russia trade" concept, with recent news indicating imminent tire capacity development in Russia. Additionally, Fengyuan Tire, Chaoyang Langma, and other tire companies are preparing listing processes.

Price Wars and Profit Dilemmas

Continued capacity expansion brings new problems—price wars. In the second half of 2025, China's tire market uncommonly failed to witness a large-scale price increase wave. To digest increased capacity, tire companies could only squeeze profits in exchange for sales volume.

Although starting January 1, 2025, Dunlop, Nexen Tire, Xiamen Zhengxin Rubber, and other companies announced price adjustment plans with increases ranging from 2% to 3%, this mainly targeted passenger car tires and specialty tires. Price competition in the commercial vehicle tire market remains intense.

The entry of new business models such as e-commerce, auto repair shops, and car wash and beauty shops has led China's tire market into a new round of price wars. Tire store profits have been compressed to extremely low levels. In this environment, only companies with technological advantages, brand influence, and economies of scale can maintain relatively stable profit margins in competition.

Global Rankings and Competitive Landscape

In the global competitive landscape, the position of Chinese truck tire companies is steadily rising. According to the 2025 global tire Top 20 list released by British media "Tyrepress," Chinese companies including Zhongce Rubber, Sailun Group, and Linglong Tire have all seen ranking improvements.

The rankings of the global tire Top 10 showed no changes from last year, with the leading structure stabilizing. However, it's noteworthy that among the first tier with global tire sales exceeding 10 billion euros, Michelin, Bridgestone, and Continental Group all saw sales declines, while Goodyear's sales increased only marginally by 0.07%. This indicates that traditional tire giants also encounter growth bottlenecks when facing market changes.

In contrast, Chinese tire companies demonstrate stronger growth momentum. Zhongce Rubber has topped the domestic tire company rankings for sixteen consecutive years, with the gap in sales with fifth-ranked Sumitomo Rubber continuing to narrow. Sailun Tire first broke into the global Top 10 in 2024, solidly maintaining its Top 10 position in 2025, demonstrating robust sales strength and growth potential. Linglong Tire rose 3 positions with sales growing 13.28% year-over-year, making it the fastest-growing company in the 11th to 20th position range.

This phenomenon of "Eastern rise, Western decline" is becoming increasingly evident. In 2024, influenced by geopolitics and greatly increased global trade environment uncertainty, the European and American tire industries continue factory closures and layoffs. According to incomplete statistics, from 2024 to present, 29 foreign tire company factories have closed with layoffs, leaving over 10,000 unemployed. Bridgestone announced in February 2024 its withdrawal from Chinese commercial vehicle tire production and sales, focusing strategic resources on high-end passenger car tire business. Dunlop and Yokohama also successively withdrew from China's commercial vehicle tire market.

The withdrawal of these foreign brands has freed up market space for Chinese domestic companies. After foreign tire companies withdrew, domestic first-tier brands obtained more orders in high-end markets such as hazardous chemical transportation, maintaining or even increasing commercial vehicle tire business.

Industry Outlook and Recommendations

Standing at the 2025 juncture, the truck tire industry is in a critical transformation period. With rising global trade protectionism, the traditional low-price competition route has become unsustainable. Chinese tire companies must abandon the path dependency of "winning through volume," achieving genuine breakthroughs in material revolution and intelligent manufacturing.

At the 2025 China Rubber Annual Conference, China Rubber Industry Association President Xu Wenying candidly stated that the era of tire industry development relying on price involution and scale expansion has become a thing of the past. The entire industry needs to work together to establish industry competition norms, promote technological innovation and upgrades, and optimize resource allocation systems to reduce ineffective competition.

For truck tire companies, future competition will focus on the following aspects:

Technological Innovation Capability: Mastering core technologies, particularly innovation capabilities in green materials, intelligent manufacturing, and performance enhancement, will become companies' core competitiveness. Michelin has invested $2.3 billion in solid-state battery tire patent layout, indicating that Chinese companies' breakthrough battles have long transcended traditional manufacturing scope.

Brand Building: Although Chinese tires account for 35% of global market share, they account for less than 10% of the high-end passenger car OEM market. Foreign brands represented by Michelin and Bridgestone capture nearly 80% of market profits through technological monopoly and brand premiums. Domestic brands must strengthen brand building and enhance brand premium capabilities.

Globalization Layout: Against a backdrop of intensifying trade barriers, companies need more scientific planning of global capacity layouts, considering not only cost factors but also comprehensively evaluating market access, technology transfer, risk diversification, and other multiple factors.

Sustainable Development: Green tire certification is becoming a new market access threshold. EU carbon border taxes are about to be implemented, natural rubber prices have risen 60% compared to pre-pandemic levels, and labor costs increase by an average of 8% annually—all forcing companies to undergo intelligent transformation and green transition.

Industry Collaboration: Establishing industry competition norms, avoiding vicious price competition, and enhancing the entire industry's competitiveness through collaborative innovation and resource sharing.

Policy levels have also formed clear guidance. In December 2024, the Ministry of Industry and Information Technology and three other departments issued the "Standard Improvement-Led Raw Materials Industry Optimization and Upgrading Action Plan (2025-2027)," with digitalization standard improvement projects, greening standard upgrading projects, and raw materials standard foundation projects all mentioning the tire industry.

Lin Shi, Secretary-General of the Intelligent Connected Vehicle Branch of the China-Europe Economic and Technical Cooperation Association, stated that the "going out" transformation journey of China's tire industry still faces three challenges: continuously rising U.S. "double anti" tax rates on Chinese tires and upgraded EU REACH regulations forcing companies to accelerate overseas layouts; rising natural rubber prices and increasing labor costs forcing intelligent transformation; impending EU carbon border taxes with green tire certification becoming market access thresholds, requiring tire company self-innovation.

Standing at the crossroads of old and new development momentum transformation, China's tire industry's choice is no longer "whether to transform" but "how to transform quickly." When technological innovation becomes the breakthrough blade and collaborative symbiosis becomes industry consensus, a new era from "scale expansion" to "value ascension" is quietly arriving in the collision of rubber and steel.

For the vast number of truck drivers and logistics companies, this industrial transformation will ultimately manifest in product performance improvements, operating cost optimization, and safety assurance enhancement. Choosing high-quality, high-performance truck tires can not only directly reduce operating costs, decrease tire replacement frequency, and enhance driving safety and comfort but also represents a direct way to participate in global sustainable action.

In the multiple games between globalization and localization, scaling and refinement, traditional manufacturing and intelligent manufacturing, China's truck tire industry is writing its own new chapter. The ultimate direction of this transformation will not only affect industry patterns but also reshape the future of the global tire supply chain.