Tire demand in China, the world’s largest rubber consumer, is growing at a slower pace than last year as the country’s economic expansion is decelerating, a Bridgestone Corp. representative told Bloomberg.
According to the report, Vice President Makio Ohashi said China is in an “adjustment phase,” and that growth in tire sales for trucks and buses, or half of the country’s demand, may slow to near the rate of gross domestic product expansion at 7.5 %to 8% annually from last year’s 11%. Passenger car tire sales also are slowing from last year’s 16%.
China’s passenger car sales fell 1.3% in the three months ended March 31, the first decline since the first quarter of 2005, Bloomberg reported, adding that rubber futures on the Tokyo Commodity Exchange have lost 9.1% since March amid concerns the sovereign debt crisis in Europe may derail the global recovery.
Rising fuel costs also are affecting China’s vehicle sales, which will probably miss the 8% growth forecast this year. China raised prices of gasoline by 7% and diesel by 7.8% last month, the biggest increases in more than two years, according to Bloomberg.
Bridgestone reported it plans to consume a record 1.99 million tons of rubber – natural and synthetic – for tire production globally this year, rising 5.3% from last year. The tiremaker told Bloomberg a slowdown in Chinese sales may be offset by faster expansion in other emerging markets, including India and Southeast Asian nations. Bridgestone forecasts Indian demand for replacement truck and bus tire will grow 39% this year from last year, while demand for passenger car tires will expand 15%. Tire use in Thailand is expected to grow 24% for trucks and buses, and 13% for passenger-car tires.
