Three tire companies take 60% of the market
Why do Chinese tire companies build factories in Southeast Asia, Mexico, and Africa? To better export products to the United States.
It is true that the US tire market has tried every means to crack down on cheap tires, which has caused headaches for Chinese tire companies, but the market demand with annual sales of more than 280 million tires is still the most sought-after market for tire companies.
Especially after China's passenger car tires began to gradually rise (especially after the production capacity has increased), the demand for 220 million passenger car tires in the United States is the most "envious" market for Chinese tire companies. But in fact, its local brands still have the highest market share.
60% of the share comes from the three giants
Statistics show that in 2024, 60% of the US passenger car tire market will still be controlled by the world's top four giants.
Among them, Michelin and Bridgestone are still the most popular brands in the North American tire market. The brands of the two major tire companies account for nearly 37% of the US domestic tire market share. At the same time, the North American market is also the most important sales market for the two major tire companies.
According to the financial report, sales in the North American market accounted for 57% of Michelin's tire business sales and 50% of Bridgestone's total tire business sales. It can be said that the US market contributed half of the performance support for the two giants.
Of course, as a local American brand, Goodyear naturally has an unshakable market share in the local market. In 2024, Goodyear's brands accounted for about 16% of sales in the North American market.
2024 is the first year of Goodyear's transformation plan-Goodyear's advancement. Goodyear has made a new layout for its brands.
Most notably, Goodyear replanned the development of its acquired Cooper tire brand in 2024-brand restructuring and upgrading, adding product lines and specifications.
Selling the European Dunlop business back to Sumitomo Rubber will help Goodyear to further support the development of major brands such as Goodyear and Cooper, but it is worth noting that Goodyear may not increase its share in the North American market in 2025.
One of the reasons is that it sold its off-road tire business. In 2023, Goodyear's off-road tire business sales were $678 million, accounting for 6.6% of Goodyear's total sales.
This also means that even if Goodyear makes a better layout of its brand line in 2025, its sales volume will indeed increase, but the overall market share will most likely be similar to that in 2024 due to the reduction of business lines.
However, when it comes to the reduction of Goodyear's business lines, we have to mention two Japanese tire manufacturers-Yokohama and Sumitomo Rubber.
In 2024, the two tire companies purchased Goodyear's off-road tire business and Dunlop's European business respectively, but what is interesting is that the sales of the US tire business of the two tire companies are not the best Japanese tire companies in the US market.
Toyo is more dependent on the US market
In addition to Bridgestone, the Japanese tire manufacturer with the best sales performance in the United States in 2024 is Toyo. In 2024, its US tire sales reached US$2.462 billion (RMB 17.899 billion), and its market share in the United States ranked second after Germany's Continental, exceeding 4%.
Although Toyo's overall performance in 2024 is not as good as Yokohama and Sumitomo Rubber, its performance in the US market is higher than the above two Japanese tire manufacturers.
Combined with Toyo's total tire sales in 2024, the US business accounts for about 70% of its tire business sales. The United States is the market that Toyo cannot afford to lose.
Yokohama's North American sales in 2024 accounted for about 30% of its total tire sales, and its tire sales share in the US market was 3%. With the financial consolidation of Goodyear's off-road tires acquired in 2025, its market share in the United States is expected to exceed Toyo. Sumitomo Rubber's share of the North American tire market in 2024 was 2.75%.
Pirelli's large-size tires grab the market in North America
Although Pirelli's sales share in the North American market is only 3.18%, Pirelli currently only sells motorcycle tires and passenger car tires. Therefore, if only North American passenger car tire sales are calculated, Pirelli's North American tire market share may be higher.
In addition, the sales of Hankook and Giti in the North American market account for more than 1%.
Chinese brands still need to work hard
In 2024, although Chinese tire companies continue to dominate the US imported tire market through Southeast Asian channels, only Maxxis under Cheng Shin Rubber has entered the top 15 US brand share in terms of brand share.
However, the biggest market share disadvantage of Chinese tire companies is not the lack of brand influence. In fact, from 2023 to 2024, Chinese tire brands have begun to enter the top 20 or even the top 10 in various market segments of North American tire replacement. One of the important reasons for the insufficient market share of Chinese brands in North America is the insufficient localization operation.
So far, China has not been able to build factories in the United States. Looking at the brands with a large market share in North America, almost all of them have production capacity layout in the United States.
Although in 2024, Zhongce Rubber and Sailun Tire have both deployed production capacity in Mexico, North America, which is conducive to the next step of the two tire companies' expansion in the North American market, if Chinese tire companies want to truly grasp the US market, they will eventually have to settle in the US domestic market like other companies...
