22 May 2013 06:38 [Source: ICIS news]
SINGAPORE (ICIS)--China's production of light vehicle tyres is expected to more than double to around 700m units in 2020, from about 300m units in 2010, spurred by strong domestic automobile sales and higher exports, an industry analyst said on Wednesday.
With this increase, China's share of global light vehicle tyre production will rise from 23% in 2010 to 35% in 2020, according to Robert Simmons, head of rubber and tyre research at consulting firm LMC International.
The country's share of global light vehicle tyre production stood at just 5% in 2000, according to Simmons.
Meanwhile, the share of global light vehicle tyre production in advanced economies is expected to fall from 54% in 2010 to 38% in 2020, Simmons said.
"The emerging markets are entering the rapid growth stage, [while] developed markets are approaching stagnation," he said.
China's consumption of tyres is expected to grow significantly over the next few decades amid rapid population growth and growing incomes, he said.
Simmons also said that global tyre demand is expected to grow by around 3.5-4% on average over the next decade.
"However it will not be smooth and obviously we will see lower rates of growth in 2013 and 2014 but in the longer term there will be healthy growth," he added.
Between 70-75% of natural rubber and bulk synthetic rubber demand is accounted for by the tyre industry, according to Simmons.
Simmons was speaking at the World Rubber Summit 2013 in Singapore. The events runs on 21-23 May.
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