Over 70 Tire Makers Raise Prices Amid Soaring Raw Material Costs

Starting in mid-April 2026, China’s tire industry initiated its second round of price hikes this year. As of April 20, more than 70 tire manufacturers—including both foreign-invested and domestic brands—have issued price increase notices, covering passenger car tires and all-steel radial truck tires. On April 14, Bridgestone (China) announced a 3% to 5% price increase on passenger car tires effective May 1. The following day, major domestic tire makers—including Zhongce Rubber, Sailun Tires, Linglong Tire, and Wanli Tire—followed suit, with most implementing increases of 2% to 5%. Tengsen Rubber announced the steepest hike in this round, raising prices across its entire product line by 10% starting May 1. This wave of price increases is primarily driven by rising raw material costs. Raw materials account for over 70% of tire production costs, with natural rubber, synthetic rubber, and carbon black—the three core components—collectively representing more than 60% of that share. Since the beginning of 2026, prices for synthetic rubber and carbon black have continued to climb, compounded by higher logistics and transportation expenses, placing significant cost pressure on tire manufacturers. The tire price hikes are part of broader cost pass-through across the automotive supply chain. During the same period, lithium carbonate prices rebounded from a low of around RMB 75,000 per ton in 2025 to approximately RMB 160,000 per ton—a surge of over 100%. Meanwhile, supply constraints for automotive-grade memory chips persist. In response, more than ten new energy vehicle (NEV) manufacturers have either announced price increases or reduced end-customer discounts, signaling a shift away from the nearly two-year-long NEV price war.