Which country leads in tire production?

In 2023, the number of tire factories owned by world-renowned tire companies has grown to nearly 500. Tire factories in Asia, Europe, and North America account for 87% of the world's total, with their production capacity accounting for around 96%. As expected, China has the most tire factories in the world, but its production capacity is not as dominant as one might expect.

The data shows that there are 493 tire factories with DOT codes (Department of Transportation) worldwide. Of these, 161 are located in China (150 in mainland China and 11 in Taiwan), accounting for 33% of the world's total tire factories. These include international heavyweights such as Michelin, Bridgestone, and Goodyear, as well as large Chinese companies. Notably, 16 tire companies in China each manage more than three production bases. However, despite this significant number of factories, China's contribution to global tire production capacity is less than 30%, at 4.654 billion units.

The global tire industry is undergoing dynamic changes in production capacity and location. China, with 161 tire factories, is a major player, accounting for 33% of the world's total factories, but less than 30% of production capacity. In the future, China is likely to grow through mergers, acquisitions, and expansion of existing capacity, rather than adding new factories, under the influence of environmental policies and investment costs. Europe, although historically a stronghold of tire production, is experiencing a decline: a 10% reduction in the number of factories is forecast over the next five years, mainly in the UK, Germany, and France. However, countries in Eastern Europe, such as Romania, Spain, and Serbia, are becoming favorable production hubs due to lower costs.

Southeast Asia, particularly Thailand and Indonesia, is rapidly becoming a key tire production hub, offering competitive advantages in terms of cost and capacity. Looking ahead, it can be said that the global tire industry is on the cusp of a geographical balance shift. While traditional companies, such as Europe, adapt to economic and operational challenges, regions like Southeast Asia and parts of Europe with lower costs are becoming increasingly attractive for tire production investments. In China, the focus will be on improving efficiency and production capacity through strategic consolidation and technological upgrading, reflecting a shift towards more sustainable and economically viable production.