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Cars

Tire makers set sights on pricey wheel market

By Li Fangfang (China Daily)
Updated: 2010-05-14 11:31
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Tire makers set sights on pricey wheel market

Tires for motor cars are ready for shipment at a Michelin plant in Clermont Ferrand, France. The French company has expanded its network to China's third-and fourth-tire cities, with more than 5,000 dealerships across the nation. [NICOLAS THIERRY / FOR CHINA DAILY]

BEIJING - French tire maker Michelin is reinforcing its brand and reputation in the high-performance tire market by launching the latest products as Chinese customers become more demanding.

"We are putting more attention on the high performance tire market than before, a segment that is growing at a speed twice that of the overall tire market in China last year," said Antoine Guerin, vice-president of marketing and sales with Michelin (China) Investment Co Ltd.

Michelin launched its Pilot Sport 3 tire in China this week, a new generation of high-performance tires. The launch follows the market entry of the Primacy LC last year.

The Pilot Sport 3 series, with 18 different models, are for sports cars, compacts and large, powerful sedans as well as roadsters and coupes.

"As the exact answer to the quest of Chinese sports car owners for tires for driving pleasure and safety," said Guerin.

He added that the company believe that the new tire will set a new benchmark in the luxury sport segment in China.

Along with the ever increasing passenger vehicle population in China, car owners in the developing market are focusing more and more on accessories, such as tires.

According to a recent AC Nielsen survey of car owners in Beijing, Shanghai and Guangzhou, driving comfort and vehicle safety have become the primary factors determining consumers' choice of sports tires.

US tire maker Goodyear also plans to launch a high-performance tire this July, aiming at growing demand in China's luxury sport vehicle segment.

"It's very important for Michelin to win a high reputation in the high-end market to establish respect in China's tire market", said Guerin.

"And brand is key to winning in the local tire market as Chinese car owners trust dependable brands when they buy their cars and change their tires for the first time."

Related readings:
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Tire makers set sights on pricey wheel market Tire makers take it on the chin
Tire makers set sights on pricey wheel market China looks to WTO probe into US tire duties

"Although China's tire market is still far from reaching the mature ratio of 30 to 70 between OEM and replacement markets, we see great growth potential in both segments," said Guerin.

Banking on future demand for replacement tires as the new vehicle population grows, Michelin is now fully preparing a service and distribution network, in addition to its efforts to reinforce its brand.

The French company has expanded its network to the third- and fourth-tier cities in China, with more than 5,000 dealerships across the nation, including over 1,100 premium dealers.

"We are now focusing on the training for the dealers in a bid to improve our services," said Guerin. "This year, Michelin China will provide training for over 4,000 staff for our dealers."?

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