In 2026, the tire industry is experiencing a wave of price increases caused by the continued rise in raw material costs.
At the retail level, economic products generally increase by 30-50 yuan, mid-to-high-end products mostly increase by 100-200 yuan, and individual specifications increase even more, with the overall increase being about 5% – 10%.
Since May 2026, tire price increases have been transmitted to the retail end, involving multinational brands such as Michelin, Goodyear, and Bridgestone, as well as domestic brands such as Linglong and Triangle.
Different products have different price increases. The source of this round of retail price increases is the intensive release of price increase letters by tire companies since April.
According to industry statistics, more than 80 tire companies have announced price increases, with increases ranging from 2% to 10%.
Many companies said that the rising prices of core raw materials such as natural rubber, synthetic rubber, and carbon black, coupled with fluctuations in crude oil prices, have pushed up the cost of petrochemical raw materials, adding to the pressure on companies.
However, the price increase letter was not simultaneously converted into terminal price increases in all channels.
Large chain platforms such as Tuhu Automotive adopt a large-scale direct procurement model and have stocked up in advance in the first half of the year. They can withstand some of the rising cost pressure in the short term and maintain price stability.
The adjustment range of terminal selling prices on e-commerce platforms and large chain channels is significantly smaller than that in traditional stores, and some products even maintain their original price promotions.
This is because large platforms can absorb part of the cost increase with their large-scale procurement, direct procurement agreements and inventory buffers; while small retail stores lack bargaining power and inventory hedging and can only pass on cost pressures to consumers.
Currently, the increase in tire prices has not been significantly transmitted to the vehicle price.
Although more than 15 automobile companies have announced price increases or reductions in terminal discounts in 2026, the main reasons are battery technology upgrades, rising chip and memory costs, and changes in vehicle model configurations. Tires are not the main reason.
Zhang Yichao, partner of Ai Ruibo’s Greater China automotive consulting business, pointed out that tires account for a low proportion of the material cost of the vehicle, and automobile companies usually lock inventory for several months in advance to buffer price fluctuations.
It is worth noting that this round of terminal price increases is only a passive action by enterprises and some retail channels to cope with rising costs, and the cost pressure has not been completely passed on.
The international tire giant’s earnings conference call has released a signal of cost pressure in the second half of the year. Goodyear, Michelin and other companies are facing additional costs.
Domestic companies such as Senqilin saw their net profit attributable to the parent company fall by more than 40% year-on-year in the first quarter, with obvious cost pressure.
From a time window perspective, some companies consumed early low-cost inventory dividends in the first quarter. After April, raw material prices rose across the board, and cost pressures in the second quarter and the second half of the year will be more directly reflected on the profit statement.
Guan Mingyu, head of McKinsey’s automotive consulting business in China, believes that tire companies are under severe cost pressure.
When cost pressure is difficult to improve through price changes, companies need to find new solutions from both technology and brand ends.
Guan Mingyu pointed out that rising raw material prices provide an opportunity for the industry to break through price involution, and companies should rethink their competitive strategies.
At the same time, product differentiation brought about by technological innovation is the real breakthrough, and the electrification trend puts forward new requirements for tire technology.
Zhang Yichao believes that Chinese companies have reached a critical point of shifting from scale competition to value competition, and companies that lack brand premiums and technical barriers will be eliminated amid cost fluctuations.
Leading companies are also exploring ways to break the situation. Michelin has consolidated its high-end premium capabilities, Sailun Group has maintained profitability resilience, and Triangle Tire has increased its research and development.
In addition, more and more supply chain companies are building independent consumer brands, and brand recognition has become a premium bargaining chip.
In the context of normalized raw material price fluctuations and geopolitical risks, only companies that master core technologies or brand premiums can survive the cycle.
