Although you know that the shortage of chips will cause severe damage to the automobile market, you may feel more shocked if the impact results are presented in the form of data. According to the latest data from AutoForecast Solutions (AFS), an auto industry data forecasting company, North American factories were forced to cut 79000 cars from their production plans this week due to the continuing shortage of microchips. This also means that nearly 300000 tire orders will be affected.

All steel tire enterprises want to cry without tears

In 2022, the tire industry will suffer the most from the steel tire sector. Due to the weakening demand, the decline trend of the all steel tire replacement market and the original market cannot be stopped.

In the replacement market, due to the control of the epidemic situation and the reduction of production activities in all walks of life, the industry conservatively estimated that the domestic demand and sales of all steel tires decreased by more than 10%.

In the original equipment market, in October 2022, the heavy truck market did not achieve the first growth in the year. On a cumulative basis, the heavy truck market from January to October this year sold 573000 units, down 55% from 1287000 units in the same period last year, or as much as 710000 units.

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Monthly Trend Chart of Heavy Truck Market Sales in China from 2015 to 2022 (Unit: vehicle)

The sluggish demand of the commercial vehicle market has caused a sharp increase in the pressure on enterprises mainly engaged in the operation of all steel tires. Without demand, there will be no sales. Combined with the rising cost of raw materials, logistics delivery delay and other factors, factories, dealers and stores are crying.

Foreign trade tire factory has earned more

This year's tire industry is not all bad, at least the enterprises mainly engaged in foreign trade will not obviously feel the chill. This year, the domestic market has lagged behind. Most of the global epidemics have been deregulated. Affected by the economic downturn, foreign demand for cost-effective domestic tires has increased rather than decreased.

In terms of export data, China's cumulative export volume of passenger car tires from January to September was 1.8137 million tons, up 5.26% year on year. From January to September, the cumulative export volume of passenger car tyres was 3.0593 million tons, up 12.10%.

After October, the sea freight decreased, and the depreciation of RMB continued, which was also conducive to tire export. Near the end of the year, most foreign trade oriented enterprises should be able to achieve their annual performance goals.

The supporting market gap is growing

In fact, as early as August this year, AFS released the global auto production and sales data for the first eight months of 2022. In the data at that time, we could see that the global automobile production in the first eight months as of August 21 was reduced by about 3.0641 million vehicles due to the shortage of chips. At the same time, AFS also predicted the production reduction of this year in August (3903100 vehicles are expected to be reduced). However, according to the actual situation of auto manufacturers by the end of this year, the global auto production reduction may be worse than expected.