China’s Passenger Car Tire Prices drop in Feb.

China’s PCR-Distributor Price Index in February was 69.60, down 0.11% from January or 2.34% year on year.

Distributing prices of Bridgestone tires dropped in February; those of Pirelli, Goodyear, Yokohama, and Maxxis increased; and those of Dunlop, Chaoyang, Giti, Continental, Michelin, and Hankook were stable. But the overall tire prices still declined.

Rebounding rubber and crude oil prices in February will push up raw material prices in the short term and thereby led to tire price rising. But sluggish demand will keep tire price stable in March.

Introduction of PCR-Distributor Price Index

1.Index Explanation

PCR-Distributor Price Index is a relative number measures price level of PCR distributors over time. It provides a comprehensive reflection of wholesale prices of passenger car tires purchased by distributors from prime dealers.

2.Statistical Scope

The index selects 11 brands, including Michelin, Pirelli, Chaoyang, Goodyear, Hankook, Yokohama, Giti, Maxxis, Dunlop, Continental, and Bridgestone. Most of the tires are of 16-inch. The statistics are collected from major tire consuming provinces, including Guangdong, Jiangsu, Zhejiang, Hebei, Shandong, Shanghai, and Henan.

3.Investigation Means

Initial data of PCR-Distributor Price Index are collected by investigators at a specific time in specific markets targeting specific brands.

4.Way of Calculation

(1) Calculating the average price of a specific brand’s all 16-inch tires of all grades with all types of treads;

(2) Give weights to the tires according to the sales condition, price appeal and market share of the brands;

(3) Calculating the final prices according to the average prices and weights.