Shanghai, February 25 (Gasgoo.com) Currently, China's tire makers are facing fiercer competition from global tire giants, including Michelin and Bridgestone, which are increasing their investment in the Chinese market, People's Daily reported today.
"Booming domestic market made foreign companies more confident in their expansion in China, and will lead to more fierce competition in China," said a manager from a domestic tire-maker in East China's Shandong province.
Michelin, the world's second largest tire-producer, announced last month that the company would invest $1 billion to build a factory in Shenyang, southeast China. The plant is scheduled to start operation in 2012.
Continental AG, Europe's second-largest tire-maker, started a project in China last September with investment of 600 million euros and annual capacity of 18 million tires, including a new R&D facility in Shanghai.
Bridgestone is expanding its factories in China. Yokohama Tire will expand its Hangzhou factory to achieve annual output of 5.10 million tires. Toyo Tires will invest $9.80 million in Jiangsu to build a subsidiary.
In the fierce competition, domestic tire companies go to the low-end market. With China's auto industry growing, the alternative tire market will also expand, an analyst said.
