Recently, a photo of the spare tire at the rear of a Taiwan Army "light tactical wheeled vehicle" sparked heated discussion online. The photo shows the spare tire clearly printed with the word "SAILUN", which is a product of Sailun, a Chinese tire manufacturer headquartered in Qingdao, Shandong. According to Taiwan media reports, the Taiwan "Army Command" subsequently confirmed that these tires are indeed a mainland enterprise brand, purchased in 2020, and added that the actual delivery origin was Thailand and Vietnam, meeting acceptance standards. This unexpected "product promotion" incident not only debunked the so-called "non-red supply chain" advocated by the DPP authorities, but also unexpectedly served as a full-domain global live advertisement for Sailun Tires, sparking heated discussion among netizens on the island: "It indicates that tires made in mainland China have superior quality."

In fact, Sailun Tires' standout strength was no accident, but a microcosm of the strong rise of China's tire industry. Founded in 2002, Sailun has now developed into a tire manufacturing leader integrating new materials, new processes, and intelligent production. In terms of R&D, Sailun owns the globally unique "Liquid Gold" tire technology, not only breaking the "devil's triangle" law where tire wear resistance, anti-slip performance, and low rolling resistance cannot be balanced simultaneously, but also performing excellently in reducing energy consumption. Meanwhile, Sailun built the world's first rubber industrial internet platform "Xianglian Cloud", and independently developed the world's largest 63-inch giant engineering radial tire, highlighting its core strength in the tire intelligent manufacturing field.

In terms of global layout, Sailun has taken a route of "R&D + Distributed Tire Manufacturing". Currently, Sailun has intelligent manufacturing bases in Qingdao, Dongying, Shenyang, etc., domestically, and has invested tens of billions in advance in Vietnam, Cambodia, Indonesia, Mexico, Egypt, and other places. This global capacity layout not only effectively avoided international trade barriers, but also ensured the stability of the supply chain. This is also the underlying logic behind why the Taiwan Army's purchased Sailun tires were produced in Southeast Asia.

Market and brand recognition is the best footnote to Sailun's technical strength. In 2026, Sailun held the 10th position in global tire brand value again with a brand value of 1.239 billion US dollars, becoming the only Chinese brand in the top ten of the list, ranking first in China's tire brand value for four consecutive years. Over eight years, brand value grew 2.7 times, with growth rate leading the global top tire enterprises.

Sailun's rise relies on China's powerful tire industry full-chain cluster ecosystem. At the raw material end, China possesses the world's largest natural rubber distribution center, significantly compressing enterprise logistics costs; at the equipment end, domestic rubber intelligent equipment leading companies' internal mixing, shaping, vulcanization equipment global market share exceeds 40%, firmly grasping the autonomy of tire manufacturing equipment; at the research and development end, relying on top industry think tanks and national-level technology enterprise incubators, it has gathered 60% of tire manufacturing experts in the industry and a R&D team of over 4,000 people, providing a core engine for China's tire intelligent transformation.

The blunder incident of the Taiwan Army vehicle equipping Sailun tires, seemingly a piece of behind-the-scenes trivia, actually reflects China's tire manufacturing global competitiveness. The more exclusion, the wider the recognition. Chinese tire enterprises represented by Sailun are accelerating to the center of the world stage with solid technology, forward-looking global layout, and full industry chain advantages.

July16th evening, XPeng MONA L03 globally launched. This model positioned as a 'Smart Fashion SUV' for young users comes originally equipped with Linglong SPORT MASTER e tires.

At this hyper-competitive juncture of the 150,000 RMB class new energy SUV market, this matching combination is worth breaking down.

Why XPeng Chose Linglong Tires

L03's core selling point is 'Intelligent Driving Equality' — dual Turing AI chips, 1500 TOPS computing power, 2nd generation VLA system, bringing high-level intelligent driving to the 150k price point. This pricing strategy determines its requirements for the supply chain: performance cannot be compromised, and costs must be controllable.

As a key component directly contacting the road surface affecting range and NVH, tires need to meet standards in three indicators simultaneously: low rolling resistance, quietness, and wet grip, while the price must be competitive.

Linglong SPORT MASTER e fits exactly in this position. This product has obtained the highest EU Tire Label AAA certification, with hard metrics supporting grip, low rolling resistance, and quietness, and as a domestic tire, it has cost advantages over foreign brands.

More importantly, Linglong's customer base in the new energy supply chain — BYD, Geely, Chery, Seres, Leapmotor, etc. — has already formed scale effects and quality control stability. When OEMs evaluate supply chain risks, they tend to choose suppliers with substantial vehicle-mounted verification.

XPeng choosing Linglong is not a tentative cooperation but an addition on top of an existing mature supply system.

Where is the differentiation of SPORT MASTER e

For the category of new energy specialized tires, everyone is making them, but few products truly meet OEM supply requirements and end-user perception simultaneously. SPORT MASTER e's differentiation is reflected in three levels.

Technically, the AAA label means it reached the highest EU grade in rolling resistance, wet grip, and noise, which is rare in domestic tires. Low rolling resistance directly affects range, wet grip concerns safety, noise affects driving experience — these three happen to be the most frequently complained-about tire-related issues by new energy vehicle owners.

Linglong achieving top levels in these three dimensions simultaneously indicates substantial technical accumulation in formulations and structural design, not relying on a single metric to dominate.

From the market validation perspective, this product was shortlisted for the UK WhatTyre '2025 Eco Tire of the Year Award' final nominations, marking the first time a Chinese tire has entered the final competition for this award.

In the domestic 'China Auto Strict Selection' evaluation, it also won the 'Top Ten Tires of the Year' and 'Annual Green Environmental Protection Award' double honors. Endorsement from third-party evaluation agencies provides reference value for OEM supply decisions and end-consumer purchases.

From the customization perspective, Linglong designed the sidewall for L03's youth positioning — oxygen-resistant suede black process, XPeng logo contrast with suede black background, aperture element integration. This customization appears to be 'face work' in the supply business, but actually reflects Linglong's response speed and willingness to cooperate with OEM needs.

For new power brands like XPeng, the unity of detail texture is part of the brand tone. Linglong willing to invest in this indicates the supply relationship between both sides is not a simple buy-sell but involves a certain depth of synergy.

Linglong's Position in the New Energy Supply Track

Linglong has ranked first globally in new energy supply tire sales for consecutive years. This 'first place' is not supported by a single client but by coverage — layout in both economy and mid-to-high-end segments.

In the list of supply car companies, there are traditional domestic brands（BYD, Geely, Chery）, also joint ventures（Dongfeng Nissan, GAC Honda）, and new forces（Seres, Leapmotor）. The diversity of the customer structure reduces the risk of single-client dependency.

Looking deeper, Linglong's overseas capacity layout is becoming the second growth curve for new energy supply business. China's new energy complete vehicle export growth is very fast, June exports increased by 152.7% year-on-year. Tires as supply components going overseas with complete vehicles is a confirmed increment.

Linglong has ready-made capacity overseas, no need to ship from domestic. Against the background of increasingly complex international trade barriers, this is a substantial competitive advantage.

Several Judgments at the Industry Level

This supply indicates many issues behind it. The first judgment is that the competition for domestic new energy supply tires is shifting from 'who can do it' to 'who can do it stably'. OEM requirements for tires are no longer 'just needs to fit', but finding a balance point between rolling resistance, quietness, wet grip, durability, and cost.

Suppliers able to meet these conditions simultaneously will gain more supply share. The share of leading enterprises like Linglong, Sailun, and Zhongce in the new energy supply field will continue to increase.

The second judgment is that customization is becoming standard for supply business. OEMs attach increasing importance to the visual unity between tires and complete vehicle design. Details like sidewall logo, tread design, and color matching are shifting from 'bonus items' to 'basic items'. Tire enterprises capable of providing customized services will hold advantages in supply bidding.

The third judgment is that overseas capacity is becoming a moat for supply business. As EU anti-dumping measures land and US trade reviews on Southeast Asian tires continue, tire enterprises with capacity overseas can not only serve Chinese complete vehicle exports but also directly meet localization supply needs of overseas OEMs. Linglong's bases in Thailand and Serbia have taken the first move in this round of competition.

Whether XPeng MONA L03 can stand firm in the 150k level market depends on product power and delivery capability. But in this supply link, Linglong has played its cards correctly. What remains to be seen is whether this set of SPORT MASTER e tires can build a reputation in end-user actual use, and whether Linglong can extend XPeng as a client from domestic supply to overseas supply.

July, the European Tire Association released a position paper targeting the EU's "Industrial Acceleration Act". The Association welcomes the EU's recognition of tire manufacturing as a "strategic, energy-intensive industry", but believes the draft has critical gaps in "market scope, demand-side incentives, investment support, and regulatory coordination".

The core message of this statement from the Association is clear: the European tire industry is using policy tools to "de-Chinese" this product.

Continued Loss of Market Share, Import Surge is the Main Cause

The data provided by the Association is quite direct. Since 2018, EU tire manufacturers have lost over 12% of their domestic market share.

Regarding passenger car tires, the EU domestic share dropped from 71% in 2018 to 59.6% in 2025; truck and bus tire share dropped from 72% to 60.8%. However, imports surged by 195%, mainly driven by China.

A number often overlooked is: replacement tires account for 75% of total tire sales in the EU, but the current "Industrial Acceleration Act" draft offers no support for the replacement market.

The Association's logic is that the Original Equipment (OE) market is bound to car manufacturers, while the replacement market is the core base for European tire companies. If policies only protect OE but not replacement, the resilience of the European automotive value chain cannot be built.

The main breakthrough point for Chinese tires in the EU is precisely the replacement market. The Association elevated the replacement market to the level of a "strategic component", aiming to pave the way for subsequent demand-side incentives.

The Association's Five Policy Demands

At the same time, the Association proposed a set of targeted demands regarding the draft's gaps, essentially adding a protective layer for European manufacturing.

The first is identity upgrading. Recognizing tires as "strategic components" in both OE and replacement markets, not just as ancillary parts for car manufacturers. This step is to let tires hitch a ride on the industrial support of the "Industrial Acceleration Act".

The second is rules of origin plus procurement priority. The Association supports current customs rules, but requires priority layering on top of this—in public procurement and public support programs, prioritize EU manufacturing, followed by customs union countries, then followed by countries meeting equivalent trade and procurement standards.

This means that even if vulcanized in Vietnam or Thailand, as long as it is not in the EU, customs union, or equivalent country, it is ranked third.

The third is support for retreaded tires. In the commercial vehicle sector, the Association calls for support for EU-manufactured retreaded truck and bus tires. Retreading reduces emissions by 52% compared to new tires, allowing it to carry a decarbonization label while protecting the truck and bus tire industry chain in Europe. Chinese truck and bus tires remain a main import source in the EU; retread support is a lever for European companies to fight the new tire price war.

The fourth is upgrading tire labels and linking them to public procurement. The Association cites Commission data stating that EU tire labels save 45 terawatt-hours of electricity annually and reduce 15 million tons of CO2 emissions. Tires account for only 2% to 3% of the value of a complete vehicle, yet affect vehicle energy efficiency by 20% to 30%. The subtext is: public procurement should prioritize buying high-performance labeled tires and European tires, using demand-side boosting to drive European manufacturing.

The fifth is decarbonization funding and permitting acceleration. The Association demands stronger fiscal support for industrial decarbonization projects, accelerate permitting procedures, and clarify governance rules for "Industrial Manufacturing Acceleration Zones". These are hard requirements for European tire plants to cope with high energy and carbon costs.

This Strategy Aligns with Anti-Dumping Measures

The EU "Industrial Acceleration Act" was originally positioned as a pan-industrial policy, and the tire industry wants to fit itself into a strategic cage, getting decarbonization funds, procurement preferences, and rules of origin protection. This strategy aligns with the EU's implemented anti-dumping and pending anti-subsidy measures on tires from China—trade relief manages "blocking", industrial policy manages "supporting".

But this European self-rescue also has hard constraints. First is cost. European energy, labor, and compliance costs are what they are; policies can boost demand and provide funds, but it is hard to level manufacturing costs to the level of China and Southeast Asia.

Second is the spillover form of Chinese capacity. The Association's "priority layering" can block some, but not all. If Chinese companies build plants in regions with EU tariff preferences such as Serbia and Morocco, the rules of origin issue becomes more complex.

Third is how much the draft will ultimately concede is still unknown. Car manufacturers within the EU may not be willing to be bound by "European priority procurement", and cost pressure will be passed back to vehicles. The Tire Association and vehicle manufacturing interests are not fully aligned.

For Chinese companies, several things need to be done in advance. Overseas origins must withstand scrutiny, and supply chains must withstand tracing. High-end performance, green indicators, and new energy vehicle support are the only viable currency to bypass discrimination. Retreading and service systems can be looked at in advance; once the European truck and bus tire retreading loop is leveraged by policy, tire body supply and retreading cooperation might be new entry points.

This statement from the European Tire Association is not the end of the trade war, it is the prologue to industrial policy wars. For Chinese tires, the EU, this largest export market, the game has upgraded from competing on price to competing on origin, green, and high-end.

In July, the Chu Energy Automotive ET test vehicle rolled off the line in Wuhan, behind which is the owner of China's second-largest 4S group — Hengxin Automotive Group, Dai Deming, holding 10 billion in self-owned funds, gripping three cards: batteries, channels, and qualifications, looking to move up from the downstream channel to manufacture complete vehicles.

This matter hasn't made much of a splash in the automotive industry yet, but in the more 'grassroots' tire industry, the strategy of 'dealers entering the product business' has actually been in play for 20-30 years.

Currently, the replacement market for tires accounts for over 70%, dealers hold a complete grassroots network ranging from county-level repair shops to roadside tire stores, more fragmented than 4S channels and closer to real demand.

But currently, the capacity utilization rate for the entire industry is less than 70%, price wars have driven prices down to the cost line, dealers entering tire manufacturing, are they copying Chu Energy's playbook, or jumping into another fire pit?

Several Real Examples of 'Dealers Making Tires' in the Tire Industry

Let's list a few representative examples first. Qin Long, Chairman of Qingdao SenQilin, founded Sendatai in 1999. Earlier, he was an agent for Huanghai, Shuangqian, and Linglong, later also represented Michelin and Continental. Started fresh in 2007 to make SenQilin, targeting high-end passenger car tires, built a factory in Thailand, positioned in Spain. Now is an A-share listed company, revenue exceeded 4 billion in the first half of 2024, one of the representatives of domestic high-end tires.

Father and son Zhao Jianbin and Zhao Ruilong originally worked with Qingdao Ruilong Tire Technology, mainly engaging in tire import and export, owned brands 'Maibote' and 'Jingnai' under them. In 2019, Zhucheng Guopeng Rubber went bankrupt, they purchased the entire assets for 117 million, renamed Yousheng Tires to enter manufacturing; in 2024, invested another 5.16 billion to launch a new Shandong Youyue Rubber project.

Shenyang Ruihua Group Jin Penghui started in the 1990s, doing motor oil, batteries, tires, was a core agent for Toyo Tires in China, absolute channel advantage in the three northeastern provinces. In August 2025, Liaoning Hengdasheng (controlled by Ruihua) acquired with 91.59 million USD 86% equity of Tongyio Zhangjiagang, a subsidiary of Japan Toyo, renamed 'Hengdasheng Toyo Tires' — dealing for thirty years, turned around and swallowed the original manufacturer.

In 2024, Qingdao Sunset Tire Co., Ltd. planned to build a new factory in Brazil. When the news broke, the industry was shocked, this unknown dealer not only changed industries to build a factory, but also went straight overseas, likely to become the first domestic company to build a factory in Brazil.

Of course, there have been many failed attempts in recent years. In 2017, a provincial Michelin agent in East China launched a private label, commissioned a small factory in Shandong, focusing on e-commerce and partner repair shops, resulting in 2019, because the factory substituted materials, a batch of tires showed bulging and falling pieces, compensated over 2 million, the brand went bust immediately.

A large dealer in Nanjing started a private label in 2018, for 3 years, sold only 100,000 tires a year, not even as much as a big brand agent sold in a quarter, finally gave up...

Advantages of Dealers Making Tires

First is ready channels, dominating the replacement end. Over 70% of tire sales are in the replacement market, dealers already deal with hundreds of thousands of repair shops and tire stores nationwide, even sinking to county and township outlets, distributing their own brand is almost zero cost, no need to throw money at investment promotion and promotion like new brands.

Even 4S cannot match this point — 4S shops only cover new cars and warranties, tire dealers' terminals are more scattered and closer to replacement scenarios, promoting their own tires just requires giving repair shops a few percent rebate, and can expand quickly.

Second is understanding terminal pain points, products stay on track. Dealers receive feedback from repair shops every day, knowing which patterns are wear-resistant, which specs sell well in the Northeast, whether new energy vehicle owners care more about low rolling resistance or quietness, product positioning is more accurate than marketing departments of pure manufacturers.

Third is controllable capital and risk. Top dealers have stable cash flow, no need to seek financing like new forces and watch faces, first try OEM/ODM, expand if selling well, stop if not, loss is not big.

Disadvantages are equally prominent, failures far outnumber successes

First is technical and production shortcomings. Tires look simple, but formula, structure, process thresholds are not low, especially now with EV tires, silent foam, self-healing, etc., dealers lack technical accumulation, either find OEM or build factory themselves, need to hire R&D, buy equipment, high investment, long cycle, currently full industry capacity utilization is less than 70%, building a factory is like throwing money into a red ocean.

Second is conflict with agency brands. Dealers originally represent big brands like Linglong, Sailun, Michelin, starting own brand is like stealing big brands' business, big brands will definitely squeeze rebates, or even cancel agency rights, left hand fighting right hand.

Third is difficult to break brand recognition. Tires are safety parts, car owners replace tires by recognizing big brands or repair shop recommendations, own brand has no endorsement, can only take mid-to-low end cost-performance route, cannot sell at high prices, no one recognizes top end, thin profits, poor risk resistance.

Fourth is the dividend period is over. The bosses before caught the 2000-2010 window of capacity shortage and demand explosion, now capacity is overstocked, price wars driven to cost line, if you do mid-low end again, you can't make money, cannot do high end, stuck.

Now tire industry dealer profits are getting thinner and thinner, rebates for agency big brands are lower every year, some really want to integrate upwards to make their own brands, but don't blindly copy Chu Energy's 'full-chain closed loop' for car manufacturing.

The logic of tires is simpler: first OEM, avoid direct competition, use channel advantages to earn stable money, much more reliable than throwing money to build a factory and be a manufacturer. After all, even the top players in the tire industry are competing fiercely now, dealers have no technology or capacity reserves, forcing in means likely being a cannon fodder.

On June 18, Qingdao Fulin Tyres' wholly-owned overseas base — the Malaysia Jinma Rubber Phase II Intelligent Factory officially started production and operations. The landing of this project marks a key step in the global capacity layout of Chinese tire enterprises, elevating the enterprise's overseas intelligent manufacturing strength to a new level. Malaysian Minister of Transport Lu Zhaofu attended the commissioning ceremony to cut the ribbon and delivered a speech, giving high recognition to Jinma Rubber's active contribution to deepening industry practices, driving regional economic development, and promoting intelligent manufacturing upgrades.

Investing 850 Million, Overall Capacity Breaks 7 Million Units

It is reported that the total investment in Jinma Rubber Phase II project exceeds 500 million Malaysian Ringgit (approximately 850 million Chinese Yuan), located in the Malaysian Port Klang Free Trade Zone, which has prominent location advantages. The full launch and operation of this project makes Jinma Rubber the largest Chinese-owned tire production base in Malaysia with the largest investment scale and capacity volume.

The Phase II project brought a leapfrog improvement in production capacity. With the new factory in operation, Jinma Rubber's total annual capacity will break through 7 million tires, greatly releasing Fulin Tyres' overseas supply capacity, effectively filling the enterprise's overseas capacity gap, and further expanding the global market landscape. At the same time, the project is expected to provide about 500 jobs locally, achieving Sino-foreign industry collaboration and mutual benefit.

Building a High-End Intelligent Manufacturing Benchmark, Breaking Out of Low-Cost Competition

Unlike traditional overseas capacity layout, this Phase II project focuses on intelligent and high-end production. The new factory is fully equipped with internationally advanced automation, intelligence, and informatization production equipment, massively applying industrial robots and digital management systems, achieving intelligent production throughout the process, efficient control, and precise quality control, committed to building a benchmark for intelligent tire manufacturing in Malaysia.

Relying on automated production lines, this project has significantly improved product precision and production efficiency, aiming to adapt to global high-end tire market demand, helping enterprises jump out of low-cost homogeneous competition and deeply cultivate the overseas high-end market track. In addition, the project fully relies on the natural rubber resource advantages and port logistics advantages of Malaysia, building an efficient, intelligent, and low-cost modern tire production system.

Deep Plowing the Industry for Over Two Decades, Accelerating Globalization Strategy

Jinma Rubber Malaysia Co., Ltd. was established in 2016, being the first overseas base invested and built by Fulin Tyres. Among them, the Phase I factory started production at the end of 2018, with an annual capacity of 3.5 million tires; in September 2025, the Phase II expansion project was contracted by Shaanxi Construction Engineering Group No. 5 Construction Co., Ltd., and officially started construction in November of the same year.

Data shows that Qingdao Fulin Tyres was founded in 2003, deepening into the tire industry for 23 years, adhering to the "Trade + Factory" dual-engine strategy, focusing on the R&D, production, and sales of PCR Passenger Car Tires and TBR All-Steel Commercial Vehicle Tires. Fulin Tyres founder Liu Zijin graduated from Harbin Institute of Technology, successively held positions at Ningyang Chemical Plant, Weihai Triangle Tire Group, and Qingdao Sentinel, etc., holding middle to senior management positions, possessing profound industry expertise.

The Phase II production launch of this Malaysia base is an important milestone in Fulin Tyres' globalization strategy. In the future, the enterprise will rely on the location, capacity, and technical advantages of the overseas intelligent production base, continue to deepen cultivation of the international market, improve the overseas and domestic collaborative production pattern, and continuously enhance global brand competitiveness with high-end intelligent manufacturing strength.