In the first quarter of 2026, when profits in the auto parts industry were generally under pressure, domestic tire leader Zhongce Rubber Group Co., Ltd. delivered a report card of growth against the trend: operating income of 11.191 billion yuan, a year-on-year increase of 5.17%; net profit attributable to the parent company was 1.220 billion yuan, a year-on-year increase of 5.91%.
The company’s management made it clear at the performance briefing that there are currently sufficient orders and production capacity is operating at full capacity. To this end, the company is vigorously promoting the expansion of production capacity in overseas bases, moving from “products overseas” to “production capacity overseas” to respond to global trade trends and market demand.
Wind data shows that in the first quarter of 2026, the net profits attributable to parent companies of the 267 listed A-share auto parts companies included in the statistics fell by 7.53% year-on-year, putting the overall industry profits under pressure.
Against this background, Zhongce Rubber’s net profit of more than 1.2 billion yuan has firmly placed it at the top of the industry.
Among listed companies in Hangzhou, its net profit attributable to parent companies in the first quarter ranked among the top five, with a return on equity (ROE) of 4.84%, demonstrating a solid manufacturing profitability foundation.
The company’s growth is no accident.
In the past three years, its revenue and net profit have continued to increase: from 2023 to 2025, operating income increased from 35.252 billion yuan to 44.956 billion yuan, and net profit attributable to the parent increased from 2.638 billion yuan to 4.147 billion yuan.
As an industry leader that has ranked first among domestic tire companies in terms of sales for 18 consecutive years since 2008, and has ranked among the top ten global tire manufacturing companies since 2012, Zhongce Rubber’s performance resilience is closely related to its market position.
In March this year, the rise in international oil prices drove up the prices of some oil-related raw materials required for tire production.
The relevant person in charge of Zhongce Rubber said that the company has responded to cost pressures in a variety of ways.
First, product prices have increased. Following the price adjustment trend in the industry, product selling prices have been adjusted accordingly.
Public information shows that in this round of tire price increases, the increase in passenger car tires is generally between 2% and 5%.
The second is to adjust the product structure. The company has a dedicated cutting-edge technology research center and has successfully launched innovative products such as high-performance racing flagship tires and special tires for electric commercial vehicles. It has improved its ability to resist risks through high-end and differentiated transformation.
The third is to improve production efficiency, relying on long-term experience in focusing on the tire industry, and using a variety of means to control costs.
“The impact of rising costs on the company’s operating performance is controllable.”
Full orders directly drive the expansion of production capacity.
Currently, Zhongce Rubber is accelerating its overseas layout and building a global supply chain network.
On the one hand, existing bases are expanding and increasing production. The two production bases in Thailand and Indonesia will achieve operating income of 7.466 billion yuan and 1.131 billion yuan respectively in 2025.
In order to meet the demand, the company is vigorously promoting the improvement of production capacity in the two industries.
Specific plans include: the Thailand base plans to add an annual production capacity of 12 million semi-steel tires; the Indonesian base is promoting an annual production capacity of 4 million all-steel tires and 10 million semi-steel tires.
On the other hand, the new base is advancing steadily. The Vietnam production base project with an investment of approximately 1.041 billion yuan is “progressing smoothly,” while the Mexican base with a planned investment of 500 million U.S. dollars “has completed land leveling.”
These layouts are designed to stay close to the market, avoid trade risks, and capture the advantages of regional costs and free trade agreements.
Zhongce Rubber’s core competitiveness is also reflected in its balanced market layout and grasp of emerging tracks.
In 2025, the company’s domestic and overseas market revenue will account for 51.78% and 47.86% respectively, and its reliance on a single market is low.
In recent years, the company has successfully seized the historical opportunity of the rise of the new energy vehicle industry and has become the core original tire supplier for mainstream domestic new energy vehicle companies such as BYD, Xpeng, Leapmotor, and Geely.
The company plans to deeply integrate with the overseas wave of Chinese new energy vehicle companies and rely on the power of national brands to achieve brand leap in the global market.
Taken together, Zhongce Rubber’s performance in the first quarter of 2026 confirms its strong resilience as an industry leader in the face of cost fluctuations and market challenges.
Under the current situation of “full orders and full production capacity”, the company has stabilized its fundamentals through proactive price adjustments, structural optimization, and efficiency improvements, and has paved the way for continued growth with forward-looking overseas production capacity expansion and a strategy of binding new energy tracks.
With the expansion of production capacity in Thailand and Indonesia and the implementation of projects in Vietnam and Mexico, Zhongce Rubber is accelerating its move into the first echelon of global tire companies.
Sales figures show that the gap with its top five global competitors is narrowing.
However, the uncertainty of the global trade environment, fluctuations in raw material prices and increasingly fierce international competition are still challenges that need to be continuously addressed in the process of globalization.
The global advancement path of Chinese tire companies is testing the strategic determination and execution efficiency of leading companies like Zhongce Rubber.
