The tire industry, which had been silent for a long time, ushered in a strong reversal in the second quarter of 2026, and a round of price increases swept the entire industry chain.
Since April this year, more than 80 domestic and foreign mainstream tire companies such as Zhongce, Linglong, Sailun, Michelin, and Bridgestone have issued intensive price increase announcements, and the price increase wave in the industry has officially begun.
The overall price increase of the industry in this round has been maintained at 2%-10%, and the terminal retail market has followed suit. The single price of economical tires has increased by 30 to 50 yuan, and the single price of mid-to-high-end tires has increased by 100 to 200 yuan.
This round of tire price increases is not a short-term speculation, but a trend trend under the multiple logical resonances of skyrocketing raw material costs, reversal of supply and demand patterns, and rebounding market demand. The tire industry has officially stepped out of the low-price involution cycle and opened an upward path for prosperity.
1. The cost side continues to rise, with rigid support for price increases
Raw materials are the core cost of tire production, accounting for more than 70% of the overall production cost. Raw material price fluctuations directly determine the industry’s profitability and pricing trends, and are also the core driving force for this round of price increases.
In terms of natural rubber, affected by El Niño weather, core production areas in Southeast Asia continue to suffer from drought. Rubber trees have been cut early and production capacity has been significantly reduced. There is an obvious gap in global natural rubber supply and demand. Rubber prices have remained at a five-year high, continuing to squeeze the profit margins of tire companies.
The prices of synthetic rubber and chemical auxiliary materials have increased simultaneously. Affected by high international oil prices and geopolitical tensions, the prices of core raw materials such as butadiene have risen sharply. The prices of cis-butadiene and styrene-butadiene rubber have continued to rise. The prices of supporting raw materials such as carbon black and steel cord have also increased simultaneously.
The collective price increase of all categories of raw materials has brought the cost pressure of tire companies to a high level, and the industry has completely lost room for price reductions. This round of price increases is an inevitable choice for companies to hedge costs and restore profits.
2. The supply and demand pattern has been restructured, and the industry has completely bid farewell to low-price involution
In the past few years, the tire industry has long faced the problems of overcapacity and severe homogeneous competition. The industry has been mired in price wars, with meager overall profits and sluggish market sentiment.
Since 2026, the supply and demand pattern of the industry has undergone a fundamental reversal.
On the supply side, the industry continues to promote the elimination of backward production capacity, accelerate the clearance of low-end and inefficient production capacity, effectively control the disorderly expansion, the overall operating rate of the industry has steadily recovered, and the market supply has gradually shifted from excess to tight balance.
On the demand side, domestic car ownership continues to rise, and demand for terminal replacement is steadily released.
Superimposed on the low-priced inventory in the early market, which has basically been consumed, and the expected increase in prices, dealers and terminal stores have greatly increased their enthusiasm for stocking, and market transaction activity has increased significantly.
At the same time, the domestic tire export market is very resilient. With its ultra-high cost performance advantage, domestic tires continue to seize the global market share. Export data has grown steadily, effectively hedging the fluctuations of the domestic market in the off-peak and peak seasons, and providing continued support for the industry.
The triple advantages of low inventory, stable demand, and reduced supply have completely reversed the long-term weak market pattern of the tire industry.
3. Market polarization has intensified, and leading companies are undergoing value revaluation
This round of price increases has shown an obvious pattern of strong ones staying strong, and the trend of industry polarization continues to intensify.
The leading listed tire company relies on large-scale production, long-term raw material price locks, and mature brand and channel systems to have strong cost control and price transmission capabilities.
The price increase policy has been implemented quickly and has high acceptance in the end market. Corporate revenue and gross profit margins have continued to recover. The performance inflection point has been officially established, ushering in a dividend cycle in which both volume and price rise.
On the other hand, small and medium-sized tire companies lack scale advantages and technical barriers, cannot effectively share raw material costs, and have weak price transmission capabilities.
Against the backdrop of widespread price increases in the industry, small and medium-sized enterprises are prone to loss of orders and profit losses, and are forced to reduce or even suspend production, further accelerating the pace of industry clearing.
Under this trend, the market concentration of the tire industry continues to increase, the pace of domestic substitution and high-end upgrading accelerates, and the industry has officially entered a new stage of high-quality development led by leaders.
4. Outlook for the market outlook: The price increase cycle continues, but the market has not yet peaked
From the current industry fundamentals, the core logic supporting the rise of tires has not changed, and this upward boom cycle will continue.
On the cost side, the low production cycle of rubber in Southeast Asia continues, international oil prices fluctuate at high levels, raw material prices are difficult to fall back in the short term, and cost support remains solid.
On the demand side, with the arrival of the traditional peak season for tire replacement in the third quarter, demand for terminal replacement will be further concentrated.
On the supply side, industry production capacity is strictly controlled, and effective supply continues to be tight.
The industry has unanimously predicted that the tire industry may usher in a second round of collective price increases from June to July, and there is still ample room for industry profits to recover and sector prices to rise.
Conclusion
The current price increase in the tire industry is the inevitable result of the reversal of the industry cycle, the restructuring of the supply and demand structure, and the upgrading and iteration of the industry.
After years of low-price intrusion and capacity clearance, the tire industry has completely bid farewell to the era of low-profit competition and has officially entered a new development stage of price increase, quality improvement, profit restoration, and leading concentration.
This round of value revaluation and market explosion in the tire track has just begun.
