Global tire market, two days of ice and fire

In the first quarter of 2022, domestic tire companies are in grief. In contrast, overseas tire companies can really be described as making money. 

On May 5, 2022, Titan International reported its first-quarter sales results - its best quarter in nearly nine years, with sales up nearly 38% year-over-year.

The surge in overseas market demand boosts Titan's high growth

It is also actively implementing the price increase strategy. The heavy growth in overseas tire market demand has made many overseas tire companies a lot of money. 

Because demand is higher, the market is able to take it all in, even if prices go up.

It is reported that due to its high market share in the segmented market, Titan International has continued to enjoy the "bonus" from the high demand from the agricultural tire market 

and the construction machinery tire market since the third quarter of last year. Effective feedback in the terminal. According to Titan, 

Titan International achieved net sales growth across all market segments in the first three months of 2022: 

"Titan achieved a good first quarter, driven by price increases, product mix changes and market demand. , of course, the price increase has a greater impact on the performance increase.”

According to the financial report, Titan International’s sales in the first quarter of 2022 totaled US$556 million (about 3.7 billion yuan), 

and total gross profit was US$86.7 million (574 million yuan), a year-on-year increase of 63%. To this end, Paul Reitz, 

President and CEO of Titan International, said: "This year's 'good start' has given us a very good performance. While Titan's business development prospects are very good, 

Titan's agricultural and OTR tire businesses continue to suffer. Strong market fundamentals demand driven.”

When will the domestic market price increase strategy take effect?

Titan's high growth in 2022 is not an exception. Most of the overseas tire companies have achieved "rapid growth" in performance in the first quarter of this year. 

In addition to the low comparison base in the same period last year, the rapid recovery of overseas market demand has also contributed to the performance of tire companies. 

Growth and the implementation of price increases provided effective support.

Therefore, we can only see that even with the implementation of positive price increases, the profits of domestic tire companies have declined to varying degrees 

due to the lack of strong market demand. In April, due to the severe epidemic prevention and control situation in many tire markets, 

the suspension of business and the increase in inventory turnover caused by logistics obstruction will continue to drag down 

the implementation of domestic tire companies' price increase strategy and profit performance in the first half of the year.

However, practitioners do not need to be overly pessimistic. Because of the continuation of the epidemic in the first four months of 2022, 

domestic consumption has not yet fully recovered. According to experience, during the severe epidemic period, due to the closure of stores and restricted logistics, 

the tire market demand was relatively depressed, but the epidemic control achieved certain results, The clearing of regional cases often leads to an increase in demand. 

At present, with the rapid resumption of work and production in many places, various infrastructure projects continue to advance, 

the domestic tire market demand has risen, and the price increase strategy of domestic tire companies is about to take effect...