Michelin Spain and Portugal CEO María Paz Robina recently warned that Chinese tires are experiencing rapid growth in the European market, with their market share surging from 5% to 20% in a short period of time. This trend poses a serious challenge to traditional European tire manufacturers like Michelin, particularly at a critical time for the European automotive industry.
In a recent interview, Robina emphasized that the dual pressures of the rise of Chinese tire brands and the decline in new car registrations in Europe pose a direct threat to the business of companies like Michelin. She noted that Chinese auto brands such as MG, Omoda, Jaecoo, and BYD have achieved significant sales success in Europe, sparking concerns among traditional brands. Chinese tire manufacturers are capitalizing on this momentum and expanding rapidly in the European market.
Robina stated, "The European market has not yet fully recovered, and the influx of Asian brands has been very strong. Over the past 20 years, the tire market has doubled in size, but the share of Chinese brands has grown from 5% to 20%, an eightfold increase." She called on the EU to ensure that all tire manufacturers compete on equal terms, including by standardizing rules on labor and energy costs. "The EU should help the industry, not erect barriers, but rather require all companies to adhere to the same standards to achieve fair competition."
Data shows that China holds the largest market share in the global tire market, with a 35% market share. Currently, the Chinese tire industry is capitalizing on its cost-effectiveness to embrace a new round of overseas expansion opportunities. Europe, the Middle East, and North America are core markets, where demand has continued to rise in recent years. The high-end tire market has long been dominated by foreign brands. However, in recent years, domestic tire brands have rapidly broken through through R&D investment and product iteration, shedding the label of "low price, low quality."
