Crossing the Pacific, Chinese tires race to the American continent!

         Crossing the Pacific, Chinese tires race to the American continent!

In the increasingly severe trade frictions and the process of globalization, the speed of overseas tire factory construction in China has accelerated. Enterprises that have completed their Southeast Asian production capacity layout have turned their attention to more distant Europe and Africa, and are expected to successfully enter the American continent for the first time in 2024.

According to public information, as of 2020, there are 7 tire companies in Mexico, with a total of 11 factories. Bridgestone Company (two factories), Continental United States, Gupta, Goodyear, Michelin (two factories), JK (three factories), and Pirelli. The comprehensive annual production capacity of the above-mentioned factories exceeds 36 million units.

The largest tire factory is Goodyear, which achieved production in 2017 with a designed production capacity of 6 million tires per year and a total investment of 550 million US dollars; In December 2018, Michelin tires started production at its second factory in Mexico, with an annual production capacity of 4.5-5 million units; In 2020, Pirelli plans to invest $200 million within three years to build a tire factory with an annual output of 5 million tires

According to Pirelli executives, the current tire production capacity in Mexico is insufficient to meet the domestic market demand, and approximately 20 million tires need to be imported each year.

For Chinese companies, Mexico began an anti-dumping investigation on April 5, 2023, against new radial tires with an inner diameter of 13-22 inches (330.2-558.8 millimeters) originating from China and used for passenger cars and light trucks, regardless of their import sources.

Building factories directly in Mexico can at least avoid tariff barriers from countries such as Mexico, the United States, and Brazil.