tire

China is one of the largest tire manufacturing and exporting countries in the world. January 2006 figures show that overseas shipments are still on the rise, already totaling close to 8 million pieces worth US$297 million. In 2005, China shipped more than US$3 billion worth of tires, which is 55 percent more than what it exported the year before. Export volume rose at a relatively slow rate of 34 percent from 68.7 million pieces in 2004 to 91.8 million in 2005. Rising prices are the primary reason behind the higher growth rate of export value. Customs statistics show that the average unit value of tires increased close to 16 percent in 2005, compared with the 10 percent adjustment the previous year. Exports are expected to continue increasing steadily this year as suppliers intensify efforts to penetrate overseas markets to reduce their dependence on domestic sales. This move was necessitated mainly by the slowdown of China's car manufacturing industry that started in 2004 and continues today, which left many makers; especially those that had expanded in anticipation of a continued boom in the sector, with large unutilized capacity.