Cheng Shin looks to China for growth
According to a report in the Taipei Times, Cheng Shin Rubber has ambitions to overtake Yokohama rubber and become the world’s eighth largest tyre manufacturer.
The company hopes to achieve this by tapping into the fast growing Chinese car market and it has already signalled its intention to increase expenditure at its R&D operation in Kunshan, Jiangsu Province, China.
Although the US currently has the greatest number of cars in the world, China is likely to supersede the US as the world’s largest car market in the future, said Cheng Shin chairman Robert Lo.
Last year, Cheng Shin supplied 13 million tyres for about 3 million new cars in China, accounting for 13 per cent of the country’s total new car sales of 23 million. The figure is 10 per cent higher than 2012 registrations, Lo said.
From January through August 2014, Cheng Shin reported revenue of $2.9 billion, registering a 4.8 per cent decline from nearly $3 billion a year ago due to greater competition from global tier-one tyre makers in China, said one news source.
Analysts say the sales drop reflects slowing growth in China’s commercial vehicle market.