China International Tire Expo (CITEXPO) organised its 16th edition at the Shanghai World Expo Exhibition and Convention Center in between 20th – 22nd August 2018. The three-day show is regarded as a key trade event for the tyre business in the Asia-Pacific region.
Citexpo the Focus for Chinese Tyre Industry
The show continues to attract trade visitors from key high-end markets despite the on-going US-China tariff war and anti-dumping imposed on import of Chinese tyres in the EU market.
The organisers plan to bring in new exhibitors from newer markets to further increase the show outreach. Chinese tyre producers remain the biggest exporters of tyres to the world market but growing protectionism globally is forcing them to shift the focus to the home market as well as away from North America and Europe to other regions.
The 17th CITEXPO is scheduled to be held between August 19th-21st, 2019 in Shanghai. Sam Lai, representing the organisers Reliable International Exhibition Services Co Ltd, discussed the recently held edition and plans for the 2019 event:
The Tyreman
How big is this year’s show compared to the 2017 edition in terms of number of visitors, exhibitors, total area occupied by the show?
Sam Lai
It is a very tough year for the tyre industry because of all the trade protectionism around the world, which has created a lot of uncertainty among international tyre dealers and importers. However, we are grateful that we keeping the number of exhibitors and visitors at the same level as the last edition. This is due to our 16 years of history and strong track record. It is the one show that most tyre dealers will attend for multiple reasons i.e to meet existing suppliers, see new exhibitors and brands that may not be in other shows, touch and feel the latest products, check and compare prices and moreover, connect with old and new contacts. All under one roof!
The Tyreman
The show is focused largely on the Chinese tyre makers, is there any plan to bring in foreign players also from neighbouring markets
Sam Lai
Yes, this will be one of our main areas of focus this year. The show attracts over 500 brands or products with very competitive pricing and high quality. New brands continue to be added each year that may not have been at the show earlier or in other shows. Besides, Citexpo is open to only professional visitors, and we, as organisers, care about their experience. The show provides an opportunity to talk to the manufacturers and touch their products directly in a very friendly and relaxing environment, which is more effective compared to connecting with them on email or phone. Therefore, trade visitors never mind the expense and prefer to fly to attend our show.
The Tyreman
What measures are planned to further expand the show next year in terms of number of exhibitors and space?
Sam Lai
We will aggressively pursue in recruiting more international exhibitors interested in not only the China market but also connect with their international dealer networks. We will make efforts to bring in tyre manufacturers from countries like Russia, Eastern Europe, India, Japan, Korea, South-East Asia and South America in the next show.
The Tyreman
Has there been any impact of the anti-dumping duties on Chinese TBR tyres in Europe on the number of trade visitors?
Sam Lai
We have over 7% of our visitors from Europe each year. But the anti-dumping duties on Chinese TBR imports in Europe, has left an impact on trade visitors from that region year. However, I did interact with a lot of European visitors interested in sourcing wheels.
The Tyreman
How do you see the overall impact of the ongoing tariff war between China-US and the anti-dumping duty imposed on Chinese tyre imports in EU on the Chinese tyre industry?
Sam Lai
The impact is expected to be temporary. The main impact has been confusion among importers rather than affecting the real competitiveness of Chinese products. Most manufacturers around the world are running at over 90% capacities and the world wide tyre market demand is growing. Even before all the tariff was in place, tyre prices were already increasing before the demand and raw material price increases. China is already the biggest producer of tyres because of its enormous internal market which actually helps create one of the Chinese manufacturers’ main competitive advantage – scale of production. Now most Chinese manufacturers are focusing on brand, new technology and manufacturing automation which will only increase China’s competitiveness.
The Tyreman
Are there any plan to bring the show to other Chinese cities in the future?
Sam Lai
Not in the meantime. One of the main strengths of our show as it one of the most international and professional trade shows with visitors from around 120 countries each year. And Shanghai is also pretty much the most international city in China, and both our exhibitors and visitors enjoy what Shanghai offers.
The Tyreman
How big is the Chinese tyre market annually in terms of volume?
Sam Lai
According to the latest data of China Tire Commercial Network, China produced 653 million tyres in 2017, exports accounted for 40%, new PCR tyres 19%, TBR tyres 6%, after-market PCR tyres to the retail market 13%, after-market TBR tyres 8%, and others 14% respectively. Assuming exports share the same proportions as the domestic market, 53.3% of the 653 million tyres produced are PCR tyres and 23.3% are TBRs.
The Tyreman
What are your observations on the Chinese tyre industry’s current and future growth trends?
Sam Lai
The biggest growth trend is the explosion of internal Chinese market. In 2017, China produced almost 30 million vehicles, exceeding EU, US and Japan combined. And now the tyre market is dominated by foreign top tier brands. Most of our Chinese exhibitors used to focus on international market and export. Now their focus may turn the other way. Moreover, the “one belt, one road” initiative has shown growing business in Africa, South America and the Middle East regions compared to North America and Europe. Therefore, Chinese exhibitors are focusing more on growing markets.
