Chongqing, a city well-known for its thriving automobile and motorcycle industries, has long lacked a strong tire manufacturing sector. This gap in the industrial chain has been an unavoidable "short leg," both in terms of industry integration and the maturity of the auto and motorcycle sectors. However, this situation is about to change.
On August 28 this year, the first batch of Chongqing-made "Double Money" tires will roll off the production line at Shuangqiao Industrial Park. As part of the city's top "Industry No. 1 Project" for 2024, the facility will annually produce 4 million all-steel radial tires and 20 million motorcycle tires. Not only will this meet the needs of 80% of local car and motorcycle manufacturers, but it will also position Chongqing as the largest tire production base in western China.
The main project was completed just days before March 25, and Shao Jiaming, Director General of Shuangqiang Group (Chongqing) Tire Manufacturing Co., Ltd., has been busy coordinating all aspects of the operation to ensure a successful completion. On March 20, reporters observed that the 400-mu plant had already seen most of its main structures completed. By March 25, the main building was capped, and by August 28, the first batch of tires was set for trial production.
What’s even more impressive is that the entire process—from the initial barren land to full-scale production—was completed in under a year. Just a few months ago, the site was still empty, with no signs of development. Now, over $60 million worth of imported machinery has already arrived, and the first batch of "Double Money" tires made in Chongqing is expected to be born soon.
“This is three months ahead of schedule,†said Shao Jiaming, clearly excited about the progress. “The famous Shanghai-based 'Double Money' brand will now be produced right here in Chongqing.â€
Chongqing has long been known as the capital of automobiles and motorcycles, yet its tire industry remained a blank spot. According to data from the Municipal Economic Commission, in 2007, the city's auto output exceeded one million units, while motorcycle production had held the national top spot for five consecutive years. It is now the largest automobile and motorcycle production base in China, with the industry serving as its primary economic pillar.
Looking ahead, the Chongqing Municipal Government aims to boost the industry's value to 320 billion yuan by 2010. The plan includes 150 billion yuan from automobile production, 70 billion yuan from motorcycles, and 100 billion yuan from parts, including 50 billion each for auto and motorcycle components, with thermal power products accounting for 25 billion.
While the city is confident in vehicle production and sales, it still faces challenges in the supply chain. For example, among the 271 suppliers of Changan Automobile, only 47% are local enterprises. Similarly, for Qingling Automobile, the percentage drops to 38%. In some cases, like Red Rock, the local supplier rate is as low as 23%.
Currently, the overall matching rate for Chongqing's auto parts companies is around 50%, and tires remain almost entirely dependent on external imports. With the new tire factory coming online, this gap is finally being addressed.
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