This article analyzes the growth of the Chinese OTR tire market, emphasizing its profitability within the overall tire sales landscape. Driven by increasing demand for new energy, the demand for mining tires has grown at an annual rate exceeding 10%. Major OTR tire supplier like Sailun and Zhongce Tire are leading in sales, while traditional companies such as Guizhou Tire and Triangle Tire have also made significant strides. Emerging OTR tire supplier like Forlander Tire have demonstrated technological advancements. The article projects that by 2029, OTR tire sales will exceed 110 billion RMB, indicating strong market prospects and demand for larger tires. Overall, China's OTR tire industry is rapidly developing, gradually breaking the monopoly of foreign brands.
I. Introduction
Passenger car tires, truck and bus tires, and two-wheeler tires make up the majority of tire manufacturers' sales. However, many tire manufacturers also have another type of tire that, while not a significant portion of total sales, performs very well in terms of profitability. This category is off-highway tires, or OTR tires, also known as specialty tires in many otr tire supplier. These include for agricultural machinery tires, mining tire and construction tires, port tires, and industrial tires.
II. The Growing Market for OTR Tyre
A leading Chinese OTR tire supplier noted that the surge in demand for metals in the new energy market has led to a surge in demand for mining tires. Over the past five years, the compound annual growth rate for mining tires has exceeded 10%. The proportion of all-steel radial tires in the global off-highway tire market is expected to reach 43.5% by 2029. Demand for large all-steel tires (49 inches and larger) continues to rise, encompassing industries such as industrial machinery, agricultural machinery, and other construction equipment.
If global trends in industrial and agricultural mechanization, as well as real estate and infrastructure development, continue to rise, global off-highway sales of all-steel radial tires could see a compound annual growth rate of around 25% between 2025 and 2030.
III. Dominance of Major OTR Tire Company
Based on 2023 sales figures, Sailun Tire and Zhongce Tire will have the highest sales figures, reaching RMB 4.204 billion and RMB 2.607 billion, respectively.
Other tire IPOs indicate that both companies have also performed exceptionally well in the technically more challenging and lucrative jumbo tire market.
OTR Tire Supplier - Sailun Tire
In 2022, Sailun Tire produced approximately 5,500 all-steel jumbo tires, while Zhongce's production reached 8,000 units after its acquisition of Tianjin International. In China, their respective all-steel jumbo tire production accounts for 20% and 3% of all-steel OTR tire production in that year, placing both OTR tire company among the top five producers of all-steel jumbo tires in China.
OTR Tire Supplier - Zhongce Tire
Zhongce Rubber primarily produces OTR tyre 57 inches and below. With the acquisition of Tianjin International, Zhongce Rubber OTR tire company has achieved comprehensive coverage of demand in both the north and south of the Chinese market.
IV. The "Old Guard" of OTR Tyre Manufacturers
Guizhou Tire, Triangle Tire, Aeolus Tire and Double Coin Group also achieved sales breakthroughs in the OTR tyre market in 2023.
OTR Tire Manufacturer - Guizhou Tire
Guizhou Tire's off-highway tire sales reached RMB 1.88 billion in 2023. Guizhou Tire has consistently maintained a strong influence and dominance in the specialty tire market. On December 18, 2024, Guizhou Tire successfully rolled off the production line with its first 53/80 R63 jumbo OTR radial tire. This marks Guizhou Tire as one of the few manufacturers globally with the R&D and production capabilities for 57-inch and 63-inch all-steel jumbo tires.
OTR Tire Company - Triangle Tire
Triangle Tire also surpassed 1.8 billion in sales. Notably, Triangle Tire is a leader in the all-steel jumbo tire market in terms of tonnage. In 2022, Triangle produced approximately 1,000 all-steel jumbo OTR tires, ranking fourth among Chinese tire companies in terms of jumbo tire production. Triangle Tire is also a traditional OTR powerhouse capable of manufacturing a full range of products from 49 to 63 inches.
OTR Tire Company - Aeolus Tire
Fengshen Tire's off-road tire sales reached RMB 1.736 billion in 2023. Currently, Fengshen Tire is one of the few domestic tire companies still focused on the production of all-steel tires (for trucks, buses, and off-road vehicles). Previously, Fengshen planned to invest RMB 1.464 billion in its key "High-Performance Giant OTR Radial Tire Capacity Expansion and Efficiency Improvement Project." Once the project reaches full production, it is expected to add approximately 20,000 OTR radial tires annually, generating annual revenue of RMB 1.563 billion. This also means that Fengshen is expected to double its off-road tire sales between 2027 and 2028.
OTR Tire Company - Double Coin Tire
Double Coin Group, a century-old Chinese tire brand, achieved off-highway tire sales of RMB 969 million in 2023.
V. The Rising New OTR Tyre Manufacturers
Of course, there are still many Chinese OTR tire companies that have made breakthroughs in the OTR tire market, and many tire companies have also achieved technological breakthroughs in giant tire products.
OTR Tire Supplier - Boto Tyre
Wanda Baotong's off-highway tire sales are among the top ten in China - sales reached RMB 931 million in 2023.
OTR Tire Manufacturer - LingLong Tire
On January 10, 2024, Linglong Tire rolled off its first jumbo 27.00R49 tire, completing its off-highway tire portfolio and becoming one of the few tire companies globally capable of producing jumbo tires. By 2023, Linglong Tire's off-highway tire business had already achieved RMB 730 million in sales.
OTR Tire Manufacturer - Forlander OTR Tire
Forlander is one of the largest China otr tire manufacturer and supplier since 2011. Our mission is to provide finest quality and high performance OTR tires for harsh working conditions. In recent years, we have invested 60+ million dollars for the intelligent OTR tire production line. Forlander tire has become the renowned brand in the OTR tire segment. We wholesale OTR tires at great price with fast delivery.
V. OTR Tyre Market Competitive Landscape and Future Challenges
According to Yokohama Tire company forecast, sales of the off-highway OTR tire segment alone will exceed 110 billion RMB by 2029, 60 billion RMB higher than the end of 2024. Another report indicates that global demand for larger tires, with higher profit margins, will rise to 358,000 units in 2027, a 38% increase from 2024.
VI. Conclusion
OTR engineering tires are a niche market that places extremely high demands on tire load capacity and wear resistance. Previously, it was dominated by foreign manufacturers. Now, China's OTR tires are developing strongly, gradually breaking the monopoly of foreign brands and providing strong support for the development of China's engineering machinery industry.
