In the midst of the global financial crisis, the tire industry has been hit hard, and so has its key supporting sector—tire mold manufacturing. As a result, demand for tire molds has significantly declined. To stay competitive in this tough market, many tire mold companies have drastically lowered their prices. For instance, the price of a single mold has dropped nearly 100,000 yuan from its peak of 250,000 yuan, leading to an intensified price war that is now more visible than ever.
This situation stems from a combination of factors. After 2000, there was a rapid expansion in tire production capacity, which led to a surge in demand for molds. However, due to excessive product homogeneity, the market became oversupplied. As the financial crisis deepened, tire exports shrank, and the overall operations of tire manufacturers were severely impacted, causing a contraction in the tire mold market as well. In response, many mold factories have reduced their operating rates and continuously cut prices, squeezing profit margins further. Some companies are now struggling to survive in this environment.
Hong Huiping, chairman of the Head Mold 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 damage to the real economy is likely to grow. According to current trends, the total demand for tire molds has been declining in recent years. The outlook for the tire mold industry in 2009 remains uncertain. He also pointed out that the demand structure for tire molds is uneven, and there is still potential in the differentiated market.
According to Hong, shipments of all-steel RTR radial tire molds have fallen by approximately 40% year-on-year. Meanwhile, the demand for car tire molds, especially high-performance models like 17-inch, 20-inch, and 22-inch sizes, remains 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 tire molds. Historically, the growth of the tire mold industry has relied heavily on investment. However, overcapacity has led to intense competition in low and mid-range products. In contrast, high-performance molds are still largely imported, as domestic manufacturers lag behind international standards in terms of complexity, precision, and durability.
Zhang Yan, general manager of Shandong Haomai Machinery Technology Co., Ltd., said that foreign tire companies are beginning to recognize the quality of Chinese-made tire molds, particularly in non-high-end segments. Some have already started purchasing large quantities of Chinese molds, especially if the financial crisis worsens, as they look for cost-effective options. He emphasized that while price is important, foreign buyers prioritize product quality and delivery time. If a company fails to meet deadlines, it risks losing orders. He believes that winning over high-end foreign customers requires not just good pricing, but also smart strategies and reliable performance.
From Hong Huiping’s perspective, the most affected companies are those with low technological content, low added value, and weak resilience to economic shocks. To improve their risk resistance, domestic firms must focus on innovation. Through innovation, they can adjust product structures, change outdated ideas, promote technological progress, and drive sustainable development. He stressed that engaging in price wars only leads to a vicious cycle. Instead, the key to turning crises into opportunities lies in creating world-class products and exploring new markets. Shortening delivery times, controlling costs, and providing excellent after-sales service can help companies better serve the tire industry and achieve growth.
He also urged the industry to work together, avoid blind price competition, and focus on high-quality, punctual, reasonably priced, and service-oriented solutions to gain market recognition.
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