(A) the structure of China's tire industry overcapacity, product homogeneity serious competition. China's rubber industry sales this year is expected to continue to maintain steady growth, the rubber industry output will reach 950 billion yuan, an increase of 10% -15%. Among them, the tire production is expected to reach 490 million, an increase of 4%. Our country has become the world's largest tire manufacturing, exporting and consuming countries. But at the same time, China's tire industry is more serious homogenization, the simple pursuit of volume growth and production capacity of simple reproduction, low technology content and added value, rapid expansion of production capacity in low-end and high-end tires in short supply. All enterprises to seize the market, and continuously improve marketing efforts, resulting in vicious competition tire exports, lower prices, profit margins are squeezed along been accompanied suffered foreign markets increases the risk of trade protection. This question, the rapid economic growth, the market demand better situation, supply and demand tend to be disguised, once the economic growth rate down, the market demand downturn, supply and demand will gradually stand out, and ultimately affect the industry sustainable development.

(Two) rubber prices are expected to fall will bring good development of the industry. January 2009 - November 2011 period, natural rubber futures prices rose sharply, the price per ton from 12,000 yuan soared to nearly 43,000 yuan as much, then the price fell in August 2012 when the bottom fell 18,000 yuan, Since then, despite the natural rubber prices rebound, but still low. The beginning of February this year, natural rubber prices were falling trend again, March 11 -17, 2011 This week, the domestic rubber prices have declined 5.3% MoM. The natural rubber prices fell by Southeast Asian origin, chemical raw materials such as double impact of falling prices, rubber prices during the five weeks of cumulative decline reached 8%. If this year's natural rubber prices remained at 25,000 yuan / ton, the average price of 26,800 yuan, compared with last year, will be reduced by 6.7% year on year. Rubber tires accounted for 60% of the cost, assuming that the gross profit margin was 15% tire change, then the 25,000 yuan / ton rubber tire industry sales price make net profit margin increased by approximately 2.6%, the tire industry will usher in positive .

(Three) speed up access to high-end tire market for the domestic tire industry's future development direction. China's tire industry, upstream and downstream of the bargaining power is not strong, facing upstream raw materials and downstream OEMs squeezed at the moment of rising labor costs, only to enter the high-end tire market, the company's net profit margin to be fundamentally improved, and product development and quality brand is one of the indispensable core competitiveness. In recent years, the EU has introduced a number of technical barriers to trade measures, including motor vehicle safety regulations, REACH regulations and tire labeling regulations, China's tire exports greatly increased the cost and difficulty, while the United States, Brazil, Thailand, Colombia, Mexico and other countries also have on China's tire products launched anti-dumping investigation. After a low-end manufacturing, "OEM" primary stage, speed up access to high-end market, to increase their own brand development, improve value-added products has become a priority in the tire business in front of an important issue.

This proposal: First, to encourage domestic tire enterprises' technological innovation, improving tire production raw materials and formulations, and actively improve the environmental performance of products, greatly improve product quality, enhance brand awareness, efforts to build international brands, improve value-added products from the "price war "upgrade" brand war "; second is concerned about changes in the natural rubber market, explore the establishment of rubber rubber resources stabilization fund and the state regulatory mechanisms, through market buy low sell high, the establishment of business inventories, stabilize the market price fluctuations, so that the industry initiative to grasp Price ; Third, timely seize the transformation and upgrading of China's tire industry an important opportunity to promote structural adjustment, the implementation of low-carbon economy strategy to promote the development of green tire industry, from feature-intensive to technology-driven transformation.