International tire manufacturers Michelin and Bridgestone are adjusting their strategies in China to meet the increasing demand for new energy vehicles (NEVs). Michelin is enhancing its product range for NEVs and has ambitious expansion plans, while Bridgestone is boosting investments to cater to specific tire needs for electric vehicles. Both companies aim to leverage the rapid growth of China’s automotive market.
International tire manufacturers Michelin and Bridgestone are modifying their business strategies in China to align with the surging demand for new energy vehicles (NEVs). Ye Fei, president of Michelin for China and Mongolia, emphasized the rapid emergence of Chinese automobile brands, which are poised to rival foreign names. The NEV market in China has seen unprecedented growth, achieving a penetration rate exceeding 50% for the first time in August, with NEV sales increasing nearly 40% in the first ten months of this year.
In response, Michelin is collaborating with both established foreign automakers and Chinese NEV startups, adapting tire specifications to meet the stringent speed ratings and technological requirements of these new vehicles. Michelin has committed to adjusting all of its tire products for NEV compatibility, indicating their proactive approach to market needs. The company perceives China as a critical growth market, planning ongoing success over the next decade.
To ensure sustainable development in China, Michelin aims to enhance its research and development capacities to better cater to Chinese manufacturers. As part of its expansion plans, Michelin intends to increase the annual tire production capacity at its Shanghai facility by 1 million tires by 2026, while also transitioning its Shenyang truck and bus tire facility to focus on passenger vehicle tires.
Bridgestone is similarly increasing its investments in China, recognizing the growing demand for tires tailored for electric vehicles. Augustine Pedrotti, general manager of Bridgestone China, noted the company’s response to the particular technical requirements anticipated in the NEV sector. Despite closing certain manufacturing plants due to slow market recovery, Bridgestone has unveiled a substantial investment plan to boost high-end passenger tire production in its Chinese factories over the next three years.
Michelin is committed to long-term investments in its Chinese manufacturing projects, with plans extending through the next decade aimed at enhancing output capabilities. Bridgestone remains focused on increasing factory and retail network investments, leveraging the rapid growth opportunities within the Chinese market.
The article discusses how prominent tire manufacturers Michelin and Bridgestone are strategically adjusting their operations to address the burgeoning demand for new energy vehicles (NEVs) in China. With the country being the largest automotive market globally, recent data highlights a significant increase in NEV sales and penetration rates, prompting these companies to innovate and collaborate with local manufacturers.
In conclusion, Michelin and Bridgestone are both prioritizing investments in China to capitalize on the growing NEV market. Michelin is enhancing its product offerings for compatibility with NEVs and increasing production capacity, while Bridgestone is focusing on technical specifications required for electric vehicles. Both companies recognize the importance of adapting to the rapidly changing landscape of the automotive industry in China and are committed to long-term growth.
Original Source: www.yicaiglobal.com
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