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2018

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Analysis of Industry Concentration in China’s Automotive Rubber Components Sector, 2018

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Automotive rubber components represent the primary application area for rubber parts. The rubber components industry is a vital segment of the broader rubber products sector, classified as a fundamental component of modern industrial machinery, and is extensively utilized across numerous industries, including automotive, construction equipment, home appliances, and aerospace. Among these, automotive rubber components constitute the dominant application segment, accounting for more than 50% of both production and sales in the rubber components industry. On an average complete vehicle, rubber components comprise approximately 6% of the total cost, with tire-related rubber products making up 4% and non‑tire rubber products accounting for the remaining 2%. The market for non‑tire automotive rubber products boasts significant growth potential. China currently ranks among the world’s leading producers of automobiles…
　　Automotive rubber components represent the primary application area for rubber parts. The rubber‑parts industry is a vital segment of the broader rubber‑products sector and constitutes a key category of modern industrial mechanical components, with widespread use across numerous industries, including automotive, construction machinery, home appliances, and aerospace. Among these, automotive rubber components account for the largest share of applications, contributing more than 50% of both production and sales in the rubber‑parts industry. On a complete vehicle, rubber components comprise approximately 6% of the total cost; tire‑related rubber products make up 4%, while non‑tire rubber products account for the remaining 2%.
 
　　The market for non‑tire rubber products in the automotive sector is vast. China currently ranks first globally in both automobile production and sales, with passenger car output reaching 24.421 million units and commercial vehicle output at 3.698 million units in 2016, bringing total vehicle production to over 28 million units. Following a period of rapid growth, China’s auto industry has transitioned to a phase of steady, modest expansion, anchored by an already substantial production base. Globally, automobile production totaled 94.977 million units in 2016, maintaining low‑speed growth in recent years; the global market size is approximately 3.5 times that of China’s, leaving considerable room for future expansion. Non‑tire rubber components account for roughly 2% of a vehicle’s total value. Assuming an average price of RMB 100,000 per passenger car and RMB 200,000 per commercial vehicle, calculations indicate that the Chinese market for non‑tire rubber parts is valued at approximately RMB 70 billion, while the global market reaches around RMB 240 billion.
 
　　On the global market, companies from Europe, the United States, and Japan dominate the non‑tire rubber components sector. According to Rubber & Plastics News’ 2017 Top 50 Global Non‑Tire Rubber Products ranking, the U.S. accounts for 16 firms, while Japan and Europe each have 15. The remaining four companies are distributed as follows: one from Australia, two from China, and one from Malaysia. Since 2011, the number of European, American, and Japanese firms on the Top 50 list has remained stable, consistently exceeding 45.
 
　　The non‑tire rubber industry is showing a trend toward increased market concentration, accompanied by a wave of mergers and acquisitions. Since 2012, M&A activity in the non‑tire rubber products sector has remained robust, peaking in 2013 before exhibiting signs of moderation after 2015. Such transactions have made a substantial contribution to sales growth among large firms, further elevating industry concentration. In 2015, the top ten companies accounted for US$33.847 billion in sales, representing 50.87% of the total sales of the top 50—up one percentage point from the previous year. By 2016, the top ten’s sales had risen to US$35.38 billion, capturing 51.8% of the combined sales of the top 50, an additional increase of roughly one percentage point over the prior year. Meanwhile, the number of enterprises with annual revenues exceeding US$100 million has continued to grow, climbing from 13 in 2011 to 22 in 2017, underscoring the ongoing rise in industry concentration.
 
　　In China, the ratio of component output value to vehicle‑level output value stands at only 1:1, significantly lower than the 1.7:1 observed in countries with mature automotive supply chains. Amid the trend toward localized procurement, certain labor‑intensive component sectors are poised for relatively rapid domestic substitution. Owing to its comparative advantage in labor costs, this industry is shifting from developed to developing economies. With domestic labor expenses remaining lower than those abroad, the gross margins on domestically produced non‑tire rubber components exceed those of imported counterparts, suggesting that they could gradually replace imports in the future.

Concentration, automotive, tires, rubber, components, industry, rubber products, rubber parts, sales revenue, 50

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Latest Updates

2025-03-15

Chongqing Jialong Sealing Components Co., Ltd. has obtained a patent for the structural design of a waterproof protective cover assembly, which can be quickly installed on the tailgate support rod of a vehicle.

On February 24, 2025, according to information from the National Intellectual Property Administration, Chongqing Jialong Sealing Components Co., Ltd. has been granted a patent titled “Combined Structure of Waterproof Protective Sleeve,” with authorization announcement number CN 222512130 U and an application date of December 2024. The patent abstract indicates that this utility model pertains to a combined structure for a waterproof protective sleeve, comprising a detachable corrugated hose and a connecting end piece. One end of the corrugated hose is fitted with the connecting end piece, which features an open chamber that communicates directly with the corrugated hose. This design is both simple and ingenious, employing a corrugated tube and a connecting end piece in a separable configuration, enabling quick installation onto automotive tailgate support rods. According to data from Tianyancha, Chongqing Jialong Sealing Components Co., Ltd. was established in 2001 and is headquartered in Chongqing. The company primarily operates in the rubber and plastic products industry. Its registered capital stands at RMB 8 million, with paid-up capital of RMB 6.88 million. Based on big data analysis by Tianyancha, the company has made external investments in one enterprise, participated in one bidding project, and holds one trademark and 58 patents. Additionally, it possesses ten administrative licenses. Source: Financial World

2020-05-12

5.1 Environmental Impact Assessment Report for the Relocation and Reconstruction Project of the Intelligent Production Line for Automotive Rubber and Plastic Vibration-Damping Components (3)

Raw Material Storage: Solid and liquid reagents, as well as chemical reagents with differing chemical properties or incompatible fire‑extinguishing methods, shall be stored in separate cabinets. Hazardous materials must be segregated by hazard class and stored in designated toxic‑substance cabinets, which shall meet the requirements of being airtight, robust, well‑ventilated, and dry.

2020-05-12

5.1 Environmental Impact Assessment Report for the Relocation and Reconstruction Project of the Intelligent Production Line for Automotive Rubber and Plastic Vibration-Damping Components (2)

In this project, the vulcanization process employs different molds depending on product size and type (with or without a reinforcing skeleton). Since products cured in different molds vary in weight, the enterprise is unable to estimate the vulcanization output per batch. Accordingly, for the purposes of this assessment, the production takt time has been calculated based on the rubber‑mixing capacity of the compounding workshop.

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