Over the past two years, "price increases" were undoubtedly the most central keywords for the tire industry. Soaring costs of raw materials, sea freight, and energy prices forced tire companies to implement multiple rounds of price hikes. However, as global supply chain pressures have significantly eased, the persistently overheated tire market is now cooling down. The industry is not simply experiencing a "wave of price cuts" but is entering a "new inflection point" where the logic of competition is fundamentally changing.

I. Easing Pressure: The "Three Major Cost Pressures" Have Significantly Loosened

Looking back at 2021-2023, the tire industry bore heavy "three major cost pressures":

Raw Material Costs: Key raw materials like natural rubber, synthetic rubber, carbon black, and steel wire maintained high price levels, directly driving up manufacturing costs.

Sky-High Sea Freight: Soaring global container freight rates and equipment shortages severely squeezed profits from tire exports, particularly for Chinese tire companies highly reliant on overseas markets.

Energy and Geopolitics: The European energy crisis increased local tire manufacturing costs, while uncertain international situations also cast a shadow over the global supply chain.

However, by 2024, this situation has fundamentally changed. Commodity prices have retreated from their peaks, global shipping indices have returned to pre-pandemic levels, and supply chain efficiency has greatly improved. The overall easing of costs has provided the tire industry with a rare breathing space and has undermined the foundation of the previous "wave of price increases."

II. The Inflection Point is Here: Shifting from "Cost-Driven" to "Value and Structure-Driven"

The easing of cost pressure does not mean companies can rest easy. On the contrary, the focus of industry competition is undergoing profound changes. The new inflection point is reflected in the following aspects:

Price War Risks Loom, but the Logic is Different: Against the backdrop of demand not fully recovering, falling costs could indeed trigger a new round of market competition. However, this round of competition is not a low-level "price bloodbath" but revolves around "premiumization" and "globalization." Leading companies with advantages in technology, brand, and channels are expected to seize the opportunity to expand their market share.

Structural Opportunities Emerge: NEV Tires Become the New Engine: The rapid development of new energy vehicles has opened up a newhigh-value track for the tire industry. Tires specifically designed for NEVs have higher requirements for low rolling resistance, high load capacity, quietness, and wear resistance. Their unit price and profit margins are also significantly higher than those of traditional tires. The ability to quickly layout in this field and achieve technological leadership has become a key determinant of a company's future success.

Globalized Layout Becomes the "Ballast Stone": In recent years, uncertainties in geopolitics and trade frictions have made more and more Chinese tire companies realize the importance of a globalized production footprint. Establishing factories in regions like Southeast Asia, Europe, and North America can not only help avoid high tariffs such as "anti-dumping and countervailing duties" but also better facilitate proximity to markets and customers, enhancing resilience against risks.

The easing of supply chain pressure has turned the page on the old chapter of "cost inflation" for the tire industry. Beyond this inflection point, a broader and more complex competitive landscape is unfolding. Companies no longer face the simple question of survival, but rather strategic choices about how to develop. Those tire enterprises that can seize the opportunities of premium transformation, establish advantages in the NEV track, and possess a global operational vision are poised to stand out in this "new normal" and lead the industry into a new stage of high-quality development.