According to CENS, growing demand for car tires in China is expected to continue soaring, and Taiwanese tiremakers are ready to take advantage of the opportunity.
For example, Cheng Shin expects to see 10% to 20% revenue growth this year, according to some institutional investors. Other tiremakers Kenda Rubber Industrial Co., Nankang Rubber Tire Corp., Hwa Fong Rubber Ind., Ltd. and Federal Tire Corp., are also looking at increased business in China.
According to CENS, new car sales in China grew 48.3% in 2009 and 32.4% in 2010. As a result, replacement tire demand in China is expected to grow 12.3% and 14.4%, respectively, in 2012 and 2013.
In the second half of 2011, Cheng Shin began a series of capacity expansion projects at its plants in Chongqing, China, and Dolio, Taiwan, CENS said. Kenda completed passenger tire capacity expansions in Taiwan and China in late 2011.