Tire demand to reduce tire mold price war smoke
In the current global financial crisis, the tire industry has been hit particularly hard, which has led to a sharp decline in demand for tire molds. To remain competitive, many mold manufacturers have significantly lowered their prices. For instance, the price of each mold has dropped by nearly 100,000 yuan from its peak of 250,000 yuan, and the intensity of price competition is growing rapidly.
According to industry insiders, the surge in tire production capacity over the years has driven up demand for molds. However, due to excessive product homogenization, the market has suffered from oversupply. As the financial crisis deepens, export markets for tires have shrunk, affecting the operations of tire companies and, in turn, reducing the demand for tire molds. In response, many mold manufacturers have cut their operating rates and continuously reduced prices, squeezing profit margins further. Some companies are now struggling to stay afloat.
Hong Huiping, chairman of the Head Mould Branch of the China Rubber Industry Association and general manager of Guangzhou Wheel Mold Co., Ltd., noted that the impact of the financial crisis continues to spread, and the losses to the real economy are expected to grow. He pointed out that in recent months, overall demand for tire molds has been declining. The outlook for the tire mold industry in 2009 is not optimistic. However, he also emphasized that the demand structure for tire molds is uneven, and there is still potential in the differentiated market.
He added that shipments of all-steel RTR radial tire molds have fallen by approximately 40% year-on-year. Meanwhile, demand for car tire molds—especially high-performance models like 17-inch, 20-inch, and 22-inch sizes—has remained strong. The government’s subsidy policy for small-displacement vehicles has boosted sales of mid- to low-end cars, which in turn has increased the demand for corresponding tire molds.
For a long time, the growth of the tire mold industry relied heavily on investment. This has led to overcapacity and intense competition at the lower end of the market. However, when it comes to high-performance molds, China still lags behind international standards. Complex, precise, long-life, and high-performance molds are still largely imported. There is a significant gap between different types of molds, and no single company can dominate the entire market. Only by identifying the right direction and positioning their products can companies unlock their development potential more quickly.
Zhang Yan, General Manager of Shandong Haomai Machinery Technology Co., Ltd., stated that foreign tire companies are gradually recognizing the quality of Chinese-made tire molds, especially in non-high-end applications. Some companies have already decided to purchase large quantities of Chinese molds, and this trend may intensify if the financial crisis worsens. These companies are more inclined to choose cost-effective options from China. When purchasing, price is not always the top priority; they pay more attention to delivery time and product quality. If a company fails to meet deadlines, it risks losing orders.
Zhang also mentioned that foreign high-end customers require careful handling. Many of them remain skeptical about very low-priced molds, as they often engage in price wars. Therefore, it's difficult for Chinese companies to capture large shares in foreign markets.
According to Hong Huiping, the most severely affected companies are those with low technological content, low value-added products, and weak risk resistance. To improve resilience, domestic companies must promote innovation across all areas—product development, structural adjustment, mindset transformation, and technological advancement. He believes that engaging in price wars only leads to a vicious cycle. Instead, creating world-class new products and exploring new markets is the key to turning crises into opportunities. Shortening delivery times, controlling costs, and providing excellent after-sales service can help companies serve the tire industry better and achieve sustainable growth. Encouraging market coordination, pursuing common development, and avoiding blind price competition by offering high-quality, timely, reasonably priced, and well-supported products will ultimately earn market recognition.
Forged Sleeve,Forging Steel Sleeve,Sleeve Forging,Cold Forged Sleeve
Suzhou SNK Machinery Equipment Co.,LTD , https://www.snkforging.com