A wave of price increases is spreading throughout the automotive industry. Since the beginning of 2026, a significant rebound in lithium carbonate prices, tight supply of automotive-grade storage chips, and long-term industry competition have pushed the vehicle sector into a cost-driven price adjustment cycle. According to incomplete statistics, more than ten new energy vehicle manufacturers have announced price increases or reduced end-user discounts this year.
Vehicle price hikes are not an isolated phenomenon; they reflect the concentrated release of cost pressures across the entire industrial chain. Further upstream, in the tire sector, an even more intensive round of price adjustments is underway. Since mid-April, the domestic tire industry has welcomed its second wave of price increases this year. Recently, Bridgestone issued a notice announcing a 3% to 5% price increase for passenger car tires effective May 1st. Subsequently, major domestic brands such as Zhongce Rubber, Sailun Tire, Linglong Tire, and Wanli Tire followed suit collectively. Tonson Rubber even announced a 10% price hike across its entire product line effective May 1st, marking the largest increase in this round of adjustments.
From foreign giants to local enterprises, and from passenger car tires to all-steel radial truck tires, the frequency of adjustments and the breadth of coverage are rare in recent years. According to incomplete statistics, as of April 20th, over 70 tire companies have issued "price increase notices."
A comprehensive rise in raw material costs is a core driver behind this wave of tire price hikes. Data from SCI99 indicates that raw materials account for over 70% of tire production costs, with the three core materials—natural rubber, synthetic rubber, and carbon black—together comprising over 60% of the cost. Since March, prices for these materials have risen simultaneously. Natural rubber prices have climbed to a near three-year high, influenced by abnormal weather in Southeast Asian producing regions and supply mismatches. Synthetic rubber, closely tied to international crude oil prices, has seen costs rise alongside oil prices driven higher by Middle East tensions. The prices of auxiliary materials like carbon black have also increased.
Data shows that the average production cost for an all-steel radial tire in March had already exceeded 970 yuan per tire, an increase of nearly 7% compared to January. However, most companies' price adjustments in this round are only between 1% and 5%. This suggests that even after raising prices, tire manufacturers may still be unable to fully cover the incremental cost increases.
Notably, against the backdrop of industry-wide price hikes, the rise of China's automotive industry, particularly new energy vehicles, is creating structural opportunities for domestic tire makers. According to data from the China Association of Automobile Manufacturers, the market share of Chinese indigenous passenger car brands reached 69.5% in 2025, driving a significant improvement in the supporting capabilities of domestic tires. The market share of domestic tires in the passenger car original equipment market surged from 10% in 2020 to 65% in 2025. In the original equipment market for large-size tires (18 inches and above), this figure has climbed to 69%.
"Currently, eight of the world's top ten automotive companies have chosen Linglong Tire as a supporting partner," stated Zhou Lingkun, President of Shandong Linglong Tire Co., Ltd., noting that Linglong Tire has become a leading enterprise in both the domestic passenger car market and global new energy vehicle tire配套 sales.
In fact, technological upgrades and changes in demand structure are jointly opening an upward trajectory for domestic tires. Facing industry transformation, leading domestic tire companies are successively shifting towards premiumization and value competition. Previously, Zhongce Rubber launched its "No. 1 Racing" series, while Wanli Tire focused on new energy vehicle needs with its e-era premium series. Recently, Linglong Tire launched its new "Master II" product line, commencing an exclusive online pre-sale on JD.com's auto maintenance platform.
This indicates that the premiumization breakthrough for domestic tires is advancing along two parallel paths: on the product front, they are challenging the high-margin markets long dominated by foreign brands through technological iteration; on the channel front, they are leveraging the network and traffic of e-commerce platforms to shorten the distance from factory to consumer.
"In the past year's orders for premium tires on JD.com's auto maintenance platform, domestic brands accounted for over 30%," said a relevant负责人 from JD.com Auto Maintenance. "This means that for every three car owners purchasing premium tires, one actively chooses a domestic brand. More importantly, domestic brands not only match the performance but also offer prices more than 20% lower. Whether looking at original equipment market data or consumer choices in the replacement market, it proves that domestic tires have entered an era of 'good products'."
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