The development of the tyre industry is highly correlated with the automotive industry, which is affected by the macroeconomic and downstream demand boom and the existence of production and sales cycles, but the special consumer attributes of tyres as a must-have consumer product (automobiles are optional consumer products, and the demand for tyres is more rigid than automobiles) make the tyre industry boom relatively independent of the automotive industry.

In 2021, the main raw materials for tyre manufacturing are rubber, skeleton material and carbon black, and rubber purchases account for 49% of total purchases, which is the main raw material for tyre manufacturing.

From the tyre upstream raw materials rubber industry, according to the National Bureau of Statistics data, in 2021, China's natural rubber production of 851,000 tons, synthetic rubber production of 8,117,000 tons.

Tyres are the largest demand area for natural rubber, with demand accounting for more than 80%. With the continuous development of China's automobile industry in recent years, the market demand for natural rubber has been growing. Although the production of rubber tyres has declined in recent years due to the lower level of prosperity in the automobile industry, the overall scale is still large. With the rebound of the automobile industry market, the demand for natural rubber will also increase significantly.