Global tire industry investment continues to show growth momentum

On August 25, 2024, the 2024 Global Tire 75 ranking, organized by U.S.-based Tire Business, was released. The global tire industry rankings saw little change, with Michelin continuing to lead the sector while Chinese enterprises stood out. Tire sales in 2024 were uneven globally, with leading tire companies collectively under pressure. The industry exhibited a "decline in the West, rise in the East" pattern, and industry concentration declined rather than increased. Profit performance diverged across the sector, and the overall outlook remained pessimistic. Investment in the tire industry remained high, with R&D spending stable but showing signs of divergence.

According to first-half 2025 reports, tire sales growth remained weak, with profit indicators mostly declining, although investment activity stayed strong. The global tire industry is projected to achieve single-digit sales growth in 2025, with unimpressive profitability, while investment will continue its upward trend.

Rankings remain largely unchanged, with Chinese enterprises performing exceptionally

As per tradition, the 2025 Global Tire 75 ranking ranks manufacturers based on their tire-related sales revenue in 2024. This year’s top six positions remained stable. Michelin retained the top spot for the sixth consecutive year with $25.647 billion in sales. Bridgestone ranked second with $24.77 billion, narrowing the gap between the two leaders to $877 million. Goodyear ranked third with $17.447 billion; Germany's Continental Group ranked fourth with $12.466 billion. Fifth and sixth places remained unchanged from last year: Pirelli/Italy and Sumitomo Rubber/Japan. Pirelli ranked fifth with $7.3287 billion in sales, while Sumitomo Rubber ranked sixth with $6.9069 billion, widening their gap slightly compared to last year. Positions seven through ten remained stable but showed strong performances—Hankook Tire/Korea, Yokohama Rubber/Japan, Zhongce Rubber/China, and Sailun Group/China all achieved positive sales growth, ranking seventh through tenth respectively. Toyo Tire/Japan held steady at eleventh place, Kumho Tire/Korea moved up one spot to twelfth, MRF/India advanced two spots to thirteenth, and Apollo Tyres/India remained fourteenth. Linglong Tire/China rose two places to fifteenth, while Cheng Shin Rubber/China dropped from twelfth to sixteenth. Seventeenth to twentieth places were occupied by Giti Tire/Singapore, Nexen Tire/Korea, JK Tyre/India, and CEAT/India respectively.

Chinese tire manufacturers continue to play a significant role in the global industry, forming a key pillar of the world tire market. Among the top 75, China has 39 companies, India 9, the United States 3, Japan 4, South Korea 3, Turkey 3, Italy, Russia, Pakistan, and Vietnam each have 2, and Argentina, Finland, France, Germany, Iran, and Singapore each have 1. Four new entrants joined this year: Yuelong Rubber/China, Xinghongyuan Tires/China, Emerald Tires/India, and Black Panther (Panther) Tires/Pakistan.

Leading companies face collective pressure, industry shows “West down, East up” trend

Latest statistics show that global tire sales revenue reached approximately $181.96 billion in 2024, a modest 8% increase over 2023. However, company-level performance reveals significant divergence, with clear differences between leading firms and regional markets.

The top six tire manufacturers all experienced sales declines in 2024: Michelin’s tire sales dropped 5.95% year-on-year, Bridgestone fell 5.1%, Goodyear declined 6.7%, Continental Group dipped slightly by 0.27%, Pirelli decreased 0.96%, and Sumitomo Rubber fell 3.6%. This simultaneous downturn among the six giants reflects profound shifts in the global tire market, as traditional leaders face growing challenges from emerging brands in developing markets.

In contrast, companies ranked seventh to tenth all recorded sales growth: Hankook Tire grew 3.03%, Yokohama Rubber 3.95%, Zhongce Rubber 9.05%, and Sailun Group surged 21.1%, demonstrating strong momentum. Among the 61 comparable companies within the top 75, 35 reported sales increases and 26 reported declines. Companies with notable sales growth included Dongying Fangxing Rubber and Jiangsu General Tire from China, and Bridgestone-Sabanci from Turkey. Those with significant declines included Sichuan Haida Tire, Shandong Bayi Tire, and Shandong Changfeng Tire, all from China.

Regionally, sales growth was concentrated in Asian countries such as China, South Korea, and India. China performed particularly well: among its 39 listed companies, 25 achieved growth and 14 declined. Notably, all three of China’s top tire makers posted sales increases—Sailun Group grew 21.68%, and Dongying Fangxing Rubber achieved a remarkable 51% sales increase, making it the fastest-rising company in this year’s ranking. South Korea’s three tire companies also delivered strong results, all posting positive sales growth in 2024. Among India’s nine listed companies, five grew, three declined, and one had non-comparable data, indicating an overall upward trend.

In contrast, sales declines were primarily concentrated in North America and Europe. No German, French, or Italian companies appeared among the gainers, with only Titan International in the U.S. achieving a modest 1.4% growth. The global tire market’s “decline in the West, rise in the East” pattern is now clearly established.

In terms of industry concentration, the combined sales of the top three companies in 2024 totaled $67.86 billion, accounting for 37.3% of global tire sales—a 2.7 percentage point decrease year-on-year. The top ten collectively accounted for $117.45 billion, or 64.5% of total sales, down 2.2 percentage points from the previous year. Industry concentration has declined, weakening the dominance of top players and enabling a group of mid-tier companies to accelerate their rise.

In terms of size tiers, the “$2 billion club” within the top 75 remained at 18 members, while the “$1 billion club” expanded from 31 to 33, reflecting continued growth in mid-sized enterprises. In the first half of 2025, the global tire market continued its divergent growth trend: Michelin reported sales of €13.028 billion, down 3.4%; Bridgestone reported ￥2.1164 trillion JPY, down 2.8%—both giants continuing their downward trajectory.

However, some companies demonstrated resilience: Yokohama maintained steady growth with 10.3% revenue increase, and Pirelli achieved a slight 1.5% growth. Chinese companies continued to lead in growth: Sailun Tires reported revenue of RMB 17.587 billion, up 16.05% year-on-year, while Zhongce Rubber grew even faster at 18.02%. Overall, global tire sales in 2025 are expected to grow at a single-digit rate.

Tire industry profits diverge, outlook remains bleak

In 2024, the global tire industry showed a split in profitability—operating profits slightly increased while net profits faced pressure. According to data from 25 tire manufacturers tracked by Tire Business, the average pre-tax operating profit margin was 10.3%. Among the 22 comparable companies, 13 reported growth and 9 declined. Kumho Tire (+43.2%), Yokohama Rubber (+37.7%), and Goodyear (+36.2%) ranked top three, all achieving over 30% growth. In contrast, Nokian Tyres (-94.4%), Titan International (-77.7%), and JK Tyre Industries (-41.1%) all declined by more than 40%, with Nokian being the only company reporting an operating loss.

Net profit performance showed an overall downward trend, with an industry average net profit margin of 5%. Among 15 comparable companies, 8 declined and 7 grew. Titan International was the only company with negative net profit, while Balkrishna Industries achieved the highest net profit margin. In terms of sales per employee, the industry average reached $247,188 in 2024, up 6% from fiscal 2023. Kumho Tire led with $599,892 per employee, significantly ahead of Nokian Tyres ($362,571) and BKT Tires ($349,388).

In the first half of 2025, profit divergence in