Bridgestone will increase tire prices in the Chinese market starting next year
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Bridgestone (China) Investment Co., Ltd., chairman and general manager of Otaru Hiroshi said that the increase in raw material costs has exceeded 10%, the tire price increases and Bridgestone measures in other countries is consistent.
Odakichi Hongto said that Bridgestone plans to produce and sell 5.2 million car tires and 1.1 million tires for trucks and buses in China this year. The company will also face competition from Michelin and Goodyear Tire & Rubber.
Bridgestone said last month that after the tire plant in Huizhou, China was put into production in 2007, the company’s market share in China is expected to increase by a factor of 2 to 20%. China is the fastest growing tire market in the world and its annual growth rate exceeds 10%. At present, Bridgestone's sales in the Chinese market account for less than 5% of the Group's global sales. Bridgestone also produces bicycles, car seats, golf balls and other products.
It is understood that tire manufacturers including Bridgestone’s competitors Michelin and Pirelli have encountered the double impact of soaring oil prices and rubber costs. Crude oil prices rose to a record high of US$70 per barrel in August, and natural rubber prices also climbed to the highest level in 17 years in October due to the reduction in global inventories. This is particularly evident in India and China.
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