China's Billion-Yuan Tire Army

China's tire industry is undergoing a profound transformation.

2025 financial report data shows: Zhongce Rubber leads by a wide margin with 44.956 billion yuan in revenue, followed closely by Sailun Group and Linglong Tire with 36.792 billion yuan and 24.642 billion yuan respectively. Pulin Chengshan, Double Coin Group, Guizhou Tire, Sanle Tire, etc., collectively crossed the 10-billion-yuan threshold. The combined revenue of the aforementioned top enterprises is close to 180 billion yuan, and industry concentration continues to shift toward the top.

Twenty years ago, a revenue of 10 billion yuan was an unreachable ceiling for Chinese tire companies. From "low-end lock-in" to "led by billion-yuan scale", it took the Chinese tire industry an entire generation to cross this path.

From Handicraft Workshops to Billion-Yuan Giants: A Comeback Story

The starting point of the Chinese tire industry was far from glamorous compared to today.

In 1958, the "Hangzhou Hai Chao Rubber Factory" on the site of the former Hangzhou Hai Chao Temple initially produced rubber shoes and pushcart tires. In the same year, the Guizhou Rubber Factory successfully trial-produced its first automotive tire. In 1976, the predecessor of Sanle Tire — Weihai Tire Factory broke ground, with 67 employees achieving "construction and production in the same year". These unremarkable starting points later grew into the backbone of China's tire industry.

The true turning point occurred in the 1980s-1990s. In 1988, the predecessor of Pulin Chengshan completed China's first domestic radial tire production line with an annual output of 300,000 units; in 1989, Zhongce Rubber completed its radial tire production line; in 1995, Sanle Tire's first all-steel radial tire rolled off the line. The breakthrough in radial tire technology allowed Chinese tire companies to stand on the same technical starting line as foreign brands for the first time.

Entering the 21st century, private sector strength emerged. In 2002, Sailun Group was established in Qingdao, relying on the equipment capabilities of Qingdao University of Science and Technology and Soft Control Co., laying the groundwork for its future breakthroughs in "Liquid Gold" technology.

From rubber shoes to bias tires, from bias tires to radial tires, from low-end to high-end — the Chinese tire industry completed a three-stage leap in technical capabilities over more than sixty years.

Globalization Chess Game: Overseas Factories Rewrite the Rules

Technological breakthroughs allowed companies to "stand up", while global layout enabled everyone to "go global".

In 2012, Sailun Group built its first overseas factory in Vietnam, becoming the first to build overseas factories. When the US imposed anti-dumping and anti-subsidy investigations on China in 2015 and on Southeast Asia in 2021, Sailun already had mature experience accumulated in Vietnam and quickly replicated it to Cambodia, Mexico, and Indonesia.

Linglong Tire built a factory in Thailand in 2012, and the Serbia factory started construction in 2020 — marking China's first entry into Europe. In 2025, the Brazil factory was completed, finalizing the "Southeast Asia-Europe-South America" global layout.

Double Star Group took a unique path — in 2018, it acquired a controlling stake in Korea Kumho Tire. Kumho has 9 production bases and 5 R&D centers globally, serving as a major supplier for top-tier brands like Mercedes-Benz, BMW, and Volkswagen. This acquisition allowed Double Star to quickly obtain an entry ticket to the international premium market.

Today, overseas capacity has become an important growth pole for top enterprises. In 2024, Linglong Tire's overseas sales revenue reached 10.73 billion yuan, accounting for nearly half of total revenue. Zhongce Rubber has laid out overseas bases in Thailand, Indonesia, and Mexico, and in 2026 announced an investment of 1.041 billion yuan to establish a production base in Vietnam. From "product going global" to "capacity going global", Chinese tire companies are reconstructing the global supply chain.

From Price Wars to Value Wars: Technology Opens the Way to Premiumization

For a long time, "Made in China" in the tire industry was equivalent to low-end and cheap, and premium fitment was long monopolized by foreign capital.

Change is happening. Zhongce Rubber's launched "Chaoyang No. 1" premium tire focuses on the New Energy Vehicle (NEV) market. Relying on excellent quietness, grip, and low rolling resistance performance, it broke the monopoly of foreign brands in the premium fitment field, marking the shift of Chinese tire companies from "scale-driven" to "technology-driven".

In the OEM market, Zhongce's "Chaoyang" brand matched with the largest automaker in the world, Toyota for the first time; Linglong Tire entered the supplier lists of Volkswagen, Audi, Mercedes-Benz, BMW, Toyota, etc. Eight out of the global top 10 automakers chose Linglong, and its NEV fitting sales retained the global number one spot.

Guizhou Tire set a benchmark in the field of intelligent manufacturing. In 2025, Guizhou Tire was selected by the World Economic Forum as a "Lighthouse Factory", becoming the first enterprise in China's tire industry to receive this honor. Through technologies such as 5G and Artificial Intelligence (AI), its production efficiency increased by 68%, and quality defects reduced by 57% — the "Lighthouse Factory" proved to the world: Chinese tires can be made well, and can also be made smart.

What does the rise of the Billion-Yuan Army mean?

Zhongce 44.956 billion, Sailun 36.792 billion, Linglong 24.642 billion, Pulin Chengshan 11.807 billion, Double Coin 11.351 billion, Guizhou Tire 10.946 billion, Sanle 9.821 billion — this report card has profound significance.

A 10 billion yuan revenue is a watershed, meaning companies possess scale advantages, continuous R&D capabilities, and global allocation levels. Ten years ago, few companies reached this threshold; today, the combined revenue of just the aforementioned few companies is close to 180 billion yuan. The industry is shifting from "small, scattered and chaotic" to "large and strong".

Of course, gaps remain obvious. Bridgestone and Michelin have annual revenues consistently exceeding 200 billion yuan. Chinese companies still have room for catch-up in terms of scale, brand premium, and proportion of premium fitment. But with the release of overseas capacity and expansion into new tracks, the Billion-Yuan Army is expected to expand further.

Future Trends: Three Tracks Determine New Layout

Looking ahead, competition will revolve around three main lines.

First, upgrading globalization capabilities again. Building overseas factories has changed from an "optional choice" to a "must-answer question". Who has a more reasonable layout, more resilient supply chain, and stronger localization capability will gain a larger share. Sailun's "diversified presence", Linglong's "global triangular layout", and Zhongce's multi-base synergy are all exploring different paths.

Second, continuing to break through in premiumization. Whether it is Liquid Gold technology or NEV specialized tires, technical content and brand premium will determine how far a company can go. Leveraging the leading advantages of the new energy vehicle industry, Chinese tires have the opportunity to "overtake on a bend" in the EV field.

Third, comprehensive penetration of intelligent manufacturing. The demonstration effect of Guizhou Tire's "Lighthouse Factory" will push more enterprises towards digital transformation. From "Manufacturing" to "Smart Manufacturing", it is not only an efficiency improvement but a comprehensive evolution of quality, cost, and customization capabilities.

Conclusion: From "Chasing" to "Running Side by Side"

From the humble workshops of the Hangzhou Hai Chao Rubber Factory in 1958 to today's listed company with a market cap near 50 billion yuan; from the difficult trial production of the first automotive tire to the increasing number of Chinese names on the global top 10 list — this is a history of struggle about chasing, breaking through, and surpassing.

A 10 billion yuan revenue is no longer a dream, but a new starting point. Chinese tire companies are changing from "chasers" to "peers", starting to play the role of "leaders" in niche areas.

But after 10 billion, there is 100 billion. Compared to giants like Michelin and Bridgestone, brand premium, core technology, and global networks still require long-term forging. The direction is clear, the road is open. The brand new era of China's tire industry has just begun.