·New opportunities for domestic tire companies to export - Mexico

Half of China's tires are sold domestically, half of them are exported, and nearly half of the semi-steel radial tires are exported. Since the US "double-reverse" investigation last year, domestic semi-steel tires have been difficult to export. According to Longzhong Wang Kaifu, part of the production of semi-steel Mainly, mainly relying on exports, and the main export market for the US tire companies suffered heavy losses, exporting nowhere, resulting in excessive production capacity to the domestic market, in the domestic demand growth rate is obviously difficult to keep up with the pace of tire expansion, resulting in The domestic tire market is more competitive, lowering prices, lowering starts, lowering wages, etc. has become a common phenomenon in tire companies.
In the current context of internal and external troubles, the slowdown in domestic economic growth has become an indisputable fact, and it is particularly important to seek international markets outside the United States. Although the EU market has replaced the US market as China's main international market, it is difficult for domestic tires to enter the Eurozone in large quantities due to restrictions imposed by the EU labeling law. A report from the Mexican Economist brings us a light. .
According to Gravalos, general manager of Pirelli Mexico, the demand for ink tires in the 2020 market will reach 50 million, which will increase by 35% compared with the current 37 million. At present, Mexico's tire production capacity is insufficient to meet the domestic market demand, and about 20 million imported each year. Pirelli Italy plans to invest 200 million U.S. dollars in three years, with an annual output of 5 million tires and 1,800 jobs.
Pirelli is one of the top five well-known tire companies in the world. The rigor of research is undoubted. Chinese tire companies that are obstructed in exporting can not only stand in the distance to observe strong companies become stronger, but should also keep pace with the strong. Seize the new opportunities in the Mexican market. In addition to high demand, China also has certain advantages in Mexican tire export policy.
According to Longzhong Wang Kaifu, since February 8, 2015, Chinese tires will enjoy zero-tariff treatment when they export to Mexico. Mexico’s recently passed decree adjusted the MFN tariff rates for several customs tariffs, including the new tariff code 4013.90.99 (rubber inner tube for motorcycles) and the tariff code 4011.40.01 (new inflatable rubber inner tube for motorcycles) . The Mexican side believes that the country does not have the production of the above products, and its corresponding importing countries often do not sign a free trade agreement with them. Therefore, the country decided to reduce the MFN tariff rate for the import of the above two tariff items to 15% from the original 15%.
The demand for domestic tires in Mexico is huge, and the preferential conditions for zero tariffs on tire exports are new opportunities for domestic tire companies to open up export markets.

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