China Two-Wheeler Tire Market Research Report: Forecast (2024-2030)

Market Insights & Analysis: China Two-Wheeler Tire Market (2024-30):

The China Two-Wheeler Tire Market size is estimated to grow at a CAGR of around 4.5% during the forecast period, i.e., 2024-30. The rise in demand for two-wheeler tires in China is attributed to the increasing use of these vehicles for personal and commercial purposes. The rise in usage of two-wheelers has been due to their fuel efficiency, convenience, such as while navigating congested urban areas, and rising motorcycle sportsmanship. In addition, young demographics prefer leisure motorcycling as their hobbies. All these require advanced tires having better grip and suspension, thus driving year-on-year demand for off-road, dual-purpose, and track tires.

Moreover, with the rising shift across the country towards greener and more sustainable transport options, the popularity of electric two-wheelers has been expanding in China. This has resulted in significant progress within the two-wheeler. Due to the growing demand, electric vehicle manufacturers have focused on expanding their EV portfolio by introducing new models in the country. For instance,

• In 2023, China's major electric vehicle enterprise BYD Group partnered with Singaporean brand Scorpio Electric to produce its initial X1 electric scooter via its subsidiary located in Shenzhen.
• In 2023, the full-suspension electric moped featuring a 2-speed motor was released by QuietKat Lynx.

With this demand expansion, there is a rising need for tires that are compatible with EV battery integration, while ensuring top-notch safety features through enhanced grip strength and resistance against frequent abrasion.

Further, the continuous increase in CO2 emissions in the region specifically across China as a result of the surging accumulation of on-road vehicles, has led to an increased focus of the government to boost initiatives towards reducing these emissions to ensure sustainability. Owing to this, both the government and the two-wheeler manufacturers such as Honda, Yamaha, Suzuki, etc., are turning towards adopting sustainable tires. Thus, witnessing the surging demand, tire manufacturing companies like Nexen Tires, Linglong Tires, etc., are launching their sustainable product portfolios in the region, to gain the emerging revenue opportunity. These sustainable two-wheeler tires tend to improve energy efficiency & reduce fuel consumption since these tires are designed with lower rolling resistance, which requires less energy to move the vehicle forward. Hence, as these tires help save fuel & lower operating costs, consumers are also gradually shifting toward them in the country.

China Two-Wheeler Tire Market Driver:

Two-Wheeler Fleet Expansion Due to Rising Demand for Personal Transportation & Expanding E-commerce Sector to Propel Market Growth – China Two-Wheeled Tire Industry is seeing a tremendous surge due to the increasing fleet of motorcycles and scooters, as more individuals prefer this mode of personal transportation. This trend holds nationwide with heightened demand for tires to support both new and pre-existing two-wheelers. Factors like urbanization, and lifestyle changes amongst consumers, coupled with increased disposable income are major contributors driving the rise in popularity among personal two-wheeler usage throughout China. As the nation grows and becomes more congested, many individuals are turning to motorcycles and scooters as a more efficient means of navigating traffic. Chinese cities such as Beijing are one of the most densely populated capital cities in the world. With over 21 million residents and a rapidly growing economy, China’s capital is facing significant traffic congestion. According to China Urban Transportation, Beijing’s traffic congestion index reached a peak of 2.09 in 2023 depicting an increase of around 5.6% in commuter peak traffic congestion. Due to this, the fleet size of two-wheelers is increasing, and in return, frequent wear and tear of tires is boosting the need for replacement tires.

Furthermore, China is the largest e-commerce country across the globe due to the significant internet penetration, and smartphone users across the country. The country has the presence of significant platforms for online shopping such as Alibaba's Tmall, JD.com, Pinduoduo, etc. In addition, the country’s government provides considerable support to the e-commerce sector through various initiatives such as the Digital China strategy, cross-border trade policies, etc. Hence, these factors have been positively impacting the growth of the e-commerce sector which is further contributing to the growth of the Two-Wheeler Market in China. As scooters and motorcycles play a key role in product delivery, their demand has been increasing from the e-commerce companies thereby strongly contributing to the growth & expansion of the China Two-Wheeler Tire Market.

China Two-Wheeler Tire Market Challenge:

Increasing Usage of Retreaded Two-Wheeler Tires to Hinder Marker Growth & Development – In China, there have been significant advancements in recent years in the production of retreated tires. These tires are produced by refurbishing used tires, owing to which their prices are quite lower as compared to fresh tires. China has been one of the top countries globally, which has been involved in manufacturing retreaded tires. Hence, owing to the increasing presence of low-cost tires, it has been highly preferred by consumers across developing regions in China. Also, these retreaded tires have emerged as a preferred solution for consumers with low economic backgrounds, as it becomes easier for them to invest in lower-valued retreaded tires than fresh tires. Hence, owing to the cost-effectiveness of retreaded tires, their demand has increased in recent years, which has been hampering the sales of fresh tires. Consequently, this has emerged as one of the major challenges impacting the size & volume of the China Two-Wheeler Tire Market.

China Two-Wheeler Tire Market Trend:

Two-Wheeler Shared Mobility Solutions in China Gaining Traction – China's urban transportation landscape is undergoing a significant transformation, with two-wheeler shared mobility solutions emerging as a popular and efficient mode of transit. The trend of rising shared mobility services, such as two-wheelers-sharing, and ride-hailing, is supported by the integration of smart technologies like GPS tracking and mobile applications, making two-wheeler shared mobility solutions more user-friendly and accessible. In recent years, China has been at the forefront of the mobility revolution, with the country's transportation sector undergoing significant changes. Further, the country's rapid adoption of shared two-wheeled transport, particularly electric motorcycles, is reshaping the way for the demand for tires. The Chinese government has additionally supported shared transportation services with rules meant to encourage the adoption of efficient and clean means of transportation. The expansion of shared mobility services in China has given business services in numerous ways. For instance,

• In 2023, Hello Inc. launched Two-Wheeler Electric Vehicle Rental to provide consumers with a convenient and environmentally friendly way of travel, through the Hello Electric Vehicle Rental platform. As a result, such a mode shift has enormous potential to require compatible and advanced tires, thus boosting market expansion.

China Two-Wheeler Tire Market (2024-30): Segmentation Analysis

The China Two-Wheeler Tire Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024-2030 at the national level. Based on the analysis, the market has been further classified as:

Based on Vehicle Type:

• Scooters & Mopeds

• Motorcycles

The motorcycles segment holds the major market share in the China Two-Wheeler Tire Industry. Motorcycles have gained success in the market due to their convenience for short-distance trips, integration with shared mobility solutions, and government support towards shared transportation. Young individuals frequently use motorcycles for quick commutes or personal outings within the country; thus creating a high demand for comfortable transport options which directly affects tire sales. The overall growth in vehicle sales in China, including motorcycles, stimulates the replacement demand for tires. As vehicle ownership increases, the need for tire replacements and maintenance drives the sales of two-wheeler tires.

Furthermore, the rising interest of China’s population in motorcycle racing has further impacted the sales of motorcycles in the country. This has further boosted the number of racing events in the country. Along with this, the country has also experienced the establishment of international racing circuits which has encouraged participation in motorsports activities. Hence, due to the rising participation and usage of motorcycles, the demand for two-wheeler tires is expected to register robust growth during the forecast period.

Based on Demand Type:

• OEMs

• Replacement

The Original Equipment Manufacturers (OEMs) segment held a considerable market share in the China Two-Wheeler Tire Market. The growth of the segment is attributed to the significant presence of two-wheeler manufacturers in the country such as Yamaha, Suzuki, etc. Furthermore, several two-wheeler companies especially for electric two-wheelers are increasing their focus to expand their manufacturing capacity in the country. Hence, the establishment of new production plants across the country would generate demand for two-wheeler tires from the OEM segment. For instance,

• In 2024, LOBO EV announced the establishment of a new manufacturing plant in Wuxi, China. The facility would cover an area of 135,754 square feet and will manufacture e-bikes, electric mobility scooters, and high-speed electric motorcycles.

 China Two-Wheeler Tire Industry Recent Development:

• 2024: Mitas Tires announced a new addition to its Adventure Tire collection called Enduro Trail-XT.

• 2023: Bridgestone introduced its premium sports motorcycle tires, BATTLAX HYPERSPORT S23 globally, including China.

Gain a Competitive Edge with Our China Two-Wheeler Tire Market Report

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