Tyre Industry 2018
Tyre Industry 2018
OF JAPAN
2018
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.jatma.o
TYRE INDUSTRY OF JAPAN 2018
Contents
he Japan Automobile Tyre Manufacturers Association, Inc...................................... 2
T
JATMA Member Firms.................................................................................................................... 3
V. References
1. Automobiles and Tyres................................................................................................................. 17
2. Distribution Channels................................................................................................................... 18
3. Raw Materials............................................................................................................................... 19
4. Tyre Production Worldwide.......................................................................................................... 20
2 3
JATMA Member Firms
[Full member]
[Associate member]
3
Ⅰ History of the Japanese Tyre Industry
(1) 1940s-1950s
The industry restructured after World War II, following the destruction of facilities and equipment. In the early 1950s, after
the long-term government regulation and during the Korean War, the industry enjoyed special procurement and improved
tyre demand. However, after the Korean War, deflationary pressures affected the Japanese economy. Demand for tyres
decreased sharply, and the tyre market experienced considerable difficulty.
(2) 1960s
Around 1960, full-fledged motorization, including increased automobiles on the road and the advent of expressways,
spurred the industry toward a technological revolution, including expansion and automation of equipment, as well as
changes in the raw materials for tyres, and enjoyed a high-growth phase.
(3) 1970s
From 1970, the industry suffered demand downturns temporarily as a result of the first oil crisis. However, exports led the
growing Japanese economy. Tyre production expanded, as a result of an increase in the number of vehicles produced and
registered, and product diversification spurred demand.
(4) 1980s
Low economic growth under the worldwide recession following the second oil crisis (1979) combined with the progress of
radial tyres, which caused demand downturns, forcing the Japanese tyre industry into a period of extreme difficulty. In 1983,
however, a turnaround was seen owing to economic recovery in Japan and in principal nations worldwide. In September
1985, however, tyre demand dropped, influenced by the strong yen. Then in December 1986, the Japanese economy
started to grow steadily, backed by solid consumer spending and capital investment. As a result, the volume of rubber
consumption reached the 1-million-ton mark in 1989.
(5) 1990s
With the collapse of Japan’s “bubble economy,” the stock market crashed, corporate profits declined, the job environment
became uncertain, consumer spending and capital investment slowed, and the yen appreciated causing further deepening
of economic stagnation. Signs of recovery were seen in 1995, but in 1997 Japan entered a recession. In 1998 and 1999,
large-scale restructuring in the financial sector and the introduction of foreign capital into the automotive industry arose as
serious concerns. On the other hand, the global economy in general remained steady despite economic difficulties in
Southeast Asia, supported by the robust U.S. economy. In this environment, the Japanese tyre industry grew overall,
although rubber consumption fell below the 1-million-ton mark in 1993. Supported by brisk exports, Japanese tyre
production volume increased to 1.13 million tons in 1999, a record high.
(6) 2000s
The Japanese economy was on a trend of gentle recovering, and although it was still suffering from such problems as
continuing high prices of raw materials, it continued the biggest economic growth after the Second World War owing to
improved corporate earnings and increased capital investments. Global economy continued strong as a whole until 2007
owing to supports by the robust economy of the United States, Europe, Middle East and BRICs countries, and tyre rubber
production volume marked a record high every year from 2002 and it reached 1.36 million tons in 2007.
However, tyre production volume took a downward turn in 2008 after seven years due to the serious worldwide economic crisis
from September 2008 and decreased by 360,000 tons, then declined to 990,000 tons under 1 million tons after fifteen years.
(7) 2010-2017
Japanese economy seemed recovered once supported by the government’s economic policies etc.; however it turned in
negative growth in 2011 due to the Great East Japan Earthquake and the record appreciation of the yen. After 2013,
although there was also the rise of consumption tax in April 2014 and the growth has been weakened temporarily, it has con-
tinued its gradually increase by the effect of high stock prices and depreciation of the yen. The world economy was gradually
recovering from the after effect of the financial crisis. In addition to the United States where stable growth continues, and
Europe that turned into positive growth since the second half of 2013, emerging economies also remained robust in general
due to recovery in resource prices and other factors. In this demand environment, tyre production amount in Japan has
increased that is exceeded the previous year for the first time in 6 years to 1.03 million tons in rubber consumption in 2017.
4
2. Changes in Production Volume of Tyres and Automobiles
1,400 14,000
1,300 13,000
Automobile Production
1,200 12,000
1,100 11,000
1,000 10,000
900 9,000
800 8,000
700 7,000
600 6,000
500 5,000
Tyre Production
400 4,000
300 3,000
200 2,000
100 1,000
0 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 0
5
Ⅱ The Japanese Tyre Industry Today
1. Overview
The proportion of tyre production (fig. 2 and 3) in the rubber product industry decreased by 0.6 points from the previous
year to 79.5% in raw material consumption (the amount of newly produced rubber) and decreased by 1.1% from the
previous year to 51.2% in the sales amount. (Source: Ministry of Economy, Trade and Industry current survey of production)
The proportion of tyre production in the rubber product industry in 2017 (excluding cart tyres, tubes and flaps)
Non-tyre: Non-tyre:
260 ×103 tons 1,083.4×109 yen
(20.5%) (48.8%)
Total : Total :
1.27×106 tons 2,218.3×109 yen
Tyre: Tyre:
1,010×103 tons 1,134.9×109 yen
(79.5%) (51.2%)
Figure 4: Changes in the raw material consumption (the amount of newly produced rubber) and the
sales amount of the tyre industry of Japan
Rubber consumption (tons×104) Value (yen×108)
140 Tyre : Value 14,000
130
Tyre : Rubber consumption
120 12,000
110
100 10,000
90
Non-tyre : Value
80 8,000
70
60 6,000
50
40
Non-tyre : Rubber consumption
4,000
30
20 2,000
10
0 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
6
2. Trends in Production by Tyre Category
The production volume of automobile tyres decreased by 1.0% to 144.92 million tyres in 2017, decreased from the
previous year for three consecutive years. Due to the decrease in export, passenger car tyres and light truck tyres
decreased by 1.6% and by 1.2% from the previous year. Due to the increase in domestic and exports, truck & bus tyres
increased by 6.2% from the previous year.
Table 2: Automobile tyre production in 2017 Figure 5: Trends in automobile tyre production
Units×106
200
Production Total
20
0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Table 3: Sales of original equipment tyres in 2017 Figure 6: Trends in sales of original equipment tyres
Units×106
70
Sales Total
Units(×103) 2017/2016(%)
60
Passenger car tyres 37,907 104.9
PC
Light truck tyres 5,285 100.4 50
7
4. Trends in Sales of Replacement Tyres
The sales volume of replacement tyres increased by 2.5% from the previous year to 74.63 million tyres in 2017 and
increased from the previous year for the first time in three years.
Table 4: Sales of replacement tyres in 2017 Figure 7: Trends in sales of replacement tyres
Units×106
Sales 90
Units(×103) 2017/2016(%) 80 Total
Passenger car tyres 52,558 103.0 70
Light truck tyres 13,707 100.6 60
Truck and bus tyres 5,458 104.3 PC
50
Special vehicle tyres 800 101.5
40
Motorcycle tyres 2,109 98.8
30
Total 74,632 102.5
20 LT
N.B.: 1. Special vehicle tyres include off-the-road, industrial, Source: JATMA
TB Others
agricultural, and cart tyres. 10
2. Figures of some domestic manufacturers that are
0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
non-member of JATMA are included.
3. Imported tyres manufactured outside Japan by
Japanese manufacturers are included.
Trends in Sales of Summer Tyres and Winter Tyres for Replacement (for Four-Wheeled
Vehicles)
The sales volume of summer tyres (normal tyres except snow tyres) increased by 0.3% from the previous year to 47.42
million tyres in 2017. Passenger car tyres slightly increased by 0.4% from the previous year, and light truck tyres slightly
decreased by 0.9% from the previous year. Truck & bus tyres increased by 2.0% from the previous year.
8
II. The Japanese Tyre Industry Today
The sales volume of winter tyres increased by 7.5% to 24.30 million tyres in 2017, increased from the previous year for
the first time in three years.
Due to the increase in domestic new car sales and the influence that December was colder than in the previous year, the
production volume of the all types increased from the previous year, respectively, passenger car tyres, light truck tyres,
and truck & bus tyres increased by 8.5%, by 4.0%, and by 7.2%.
Table 6: Sales of export tyres in 2017 Figure 9: Trends in sales of export tyres
Units×106
Sales 90
Total
Units(×103) 2017/2016(%)
80
Passenger car tyres 30,661 88.6
70
Light truck tyres 5,891 96.6
Truck and bus tyres 4,192 109.3 60 PC
0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
9
6. Exports by Region of Destination
The export volume of automobile tyres in 2017 (on customs clearance basis of Ministry of Finance) decreased by 8.0% to
44.96 million tyres in quantity basis from the previous year, increased by 4.6% to 526.5 billion yen amount of money from
the previous year, and decreased by 0.4% to 1.08 million tons in product weight basis from the previous year.
By region (in quantity basis), all regions except South & Central America exports decreased and resulted in decrease
from the previous year in total.
Table 7: Exports by region of destination in 2017 Figure 10: Export trend by region
Tyre Units(×103) 2017/ Value 2017/ Units×106
2016 (FOB) 2016 80
PC TB< Others Total (%) (yen×106) (%)
North America 10,309 1,778 427 12,514 95.4 135,027 99.9 70
South & Central
America 1,891 924 193 3,008 114.4 57,969 115.7
60
Europe 9,628 684 1,429 11,741 86.9 105,256 99.6
50
Middle East 5,565 2,182 40 7,787 86.1 66,026 90.6
Table 8: Imports by region of origin in 2017 Figure 11: Import trends by region
Tyre Units(×10 ) 3 2017/ Value 2017/ Units×106
2016 (CIF) 2016 35
PC TB< Others Total (%) (yen×106) (%)
North America 563 3 20 586 114.5 6,189 118.2 30
South & Central
America 17 1 59 77 105.0 1,045 136.9
25
Europe 2,407 138 249 2,794 109.8 25,370 116.0
Middle East 25 0 2 27 82.5 235 101.5
20
Africa 5 0 0 5 276.4 47 173.7
Asia 20,840 1,852 3,124 25,816 105.6 89,120 111.3 15
Oceania 0 0 0 0 0.0 1 —
10
Total 23,857 1,994 3,454 29,305 106.2 122,007 112.7
Weight(tons) 190,445 42,175 27,471 260,091 107.4 5
N.B.: “Others” doesn’t include Aircraft tyres Source: Ministry of Finance customs records
and Bicycle tyres. 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
10
Ⅲ Measures for Tyre Safety
2. Tyre Standards
Besides the safety standards, standards for specifications of automobile tyres, rims and valves are set by the Tyre
Standards Committee which comprises representatives from tyre manufacturers and vehicle manufacturers, and
government ministries concerned and published in book form as JATMA YEAR BOOK annually by JATMA. JATMA YEAR
BOOK is designed to promote standardization, simplification, and unification of tyre use within Japan, and is contributing
to rationalization of production and use of fair tyres while ensuring the interchangeability.
The JATMA standards are quoted in the Federal Motor Vehicle Safety Standards and Regulations of U.S., applied to
tyres exporting to Canada, Australia and so on; and recognized as one of authoritative guidelines such as the ETRTO
standards of Europe and TRA standards of US.
The JATMA standards cover the following tyre categories:
- passenger car tyres,
- light truck tyres,
- truck and bus tyres,
- off-road vehicle tyres,
- agricultural equipment tyres,
- industrial vehicle tyres, and
- motorcycle tyres.
11
3. Legal Limits on Tread Wear
Worn tyres could be a threat to road safety. They’re easier to slip especially on wet roads because of the degradation of
their braking performance, comparing to new tyres. Thus the Ministry of Land, Infrastructure, Transport and Tourism
prescribed requirements for tyre groove depth (minimum groove depth) in its Safety Regulations for Road Vehicles, and
proscribed the use of tyres of insufficient groove depth on roads. (see table 9 and 10 (table 10 for high-speed driving)).
Shown in figure 12 is the result of actual inspection on in-service vehicles conducted by JATMA. As it is shown, the
number of improper inflation pressure tyres, uneven wear tyres, and insufficient groove depth tyres are notably high.
4. Product Inspection
In 1954, JATMA started its tyre inspection activity at its branch offices.
Defective or damaged tyres are now observed and checked at seven offices according to the requests from their
consumers to find causes of the damages and to provide advice to them regarding correct usage of tyres.
Table 10: W
ear limit for automobile tyres in
high-speed driving
Tyre type Groove depth limit
Passenger car tyres 1.6 mm
Light truck tyres 2.4 mm
Truck and bus tyres 3.2 mm
19
Insufficient tyre grooves (1.2)
36
Uneven wear (2.3)
0
External cuts (reaching the cord) (0.0)
7
Pins or alien matter (0.4)
233
Insufficient inflation pressure (14.6)
67
Others (4.2)
Notes:
1. Multiple tyre defects per vehicle are possible, thus the number of tyre defects does not correspond to the number of vehicles with tyre defects.
2. The defect rate is the number of defects divided by the number of vehicles inspected.
3. Tyre inspections were carried out a total of 36 times (14 times on expressways and 22 times on ordinary roads) in 2017.
12
Ⅳ Consideration for Environment
13
Figure 13: C
O2 emission amount during eduction in CO2 emission amount during
Figure 14: R
tyre usage stage (per tyre) tyre usage stage
CO2 emission CO2 emission CO 2 emission
amount is reduced amount is reduced CO 2 emission
amount is reduced
by 18.5kg (7.5%) by 34.1kg (13.9%) amount is reduced
by 1,674,000t
by 2,972,000t
245.8
CO 2 emission amount
CO 2 emission amount
kg
227.3 A
kg B D
C
E
211.7
kg
3. Effort to “Reduce”
A new concept, “Reduce Index (Re Index)” which focusing on longer wear life and weight saving has been adopted.
Taking this concept as the benchmark on tyre product design and development, endeavor to reduction of scrap tyres
generation (target 10%, actual reduction of 3-5% is expected) by promoting monitoring of the Re achievement rate.
14
IV. Consideration for Environment
General
General Consumers
wastes Tyre dealers* Reuse
Waste operators Waste operators Thermal recycling
Business Operators for collection & for intermediate
transport treatment Export
(Transportation service
providers etc.) Others
Industrial
wastes
Business Operator
(Scrapper)
*Any tyre sellers such as tyre retailers, tyre shops, auto-supply shops, gas stations, car dealers, car repair shops, and so on.
15
Table 13: Scrap tyre (Used tyre) Recycling (Tons: thousands)
2013 2014 2015 2016 2017
tons tons tons tons tons distribution(%) 2017/2016(%)
Retreaded tyre bases 59 59 56 53 54 5 102
Reuse
Thermal Recycling
Export
Cut/Shredded 7 8 7 7 4 1 57
Subtotal (C) 160 138 115 115 135 13 117
Total recycling (A+B+C) 899 921 922 903 965 93 107
Reclamation 2 1 1 1 1 1 100
Incineration, Storage, etc. 120 130 77 93 68 7 73
Subtotal (D) 122 131 78 94 69 7 73
Total (A+B+C+D) 1,021 1,052 1,000 997 1,034 100 104
N.B.: There can be some cases that distribution’s subtotals and the sums of their constituent items don’t match due to the handling of decimals. Source: JATMA
Note: Please refer to the following Uniform Resource Locator for details.
http://www.jatma.or.jp/english/tyrerecycling/report03.html
16
Ⅴ References
10 20
0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 10
②The volume of domestic production of automobile increased by 5.3% from the previous year to 9.69 million.
Under the influence of this, the sales volume of original equipment tyres (for four-wheeled vehicles) is samely increased
by 4.3% from the previous year to 44.59 million tyres in 2017.
2 20
0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 10
17
2. Distribution Channels
The distribution of automobile tyres is divided into three channels: original equipment, replacement and exports. The
channel for replacement is particularly wide-ranging with distributors as key stations as shown in Figure 19. The routes
for the channels are roughly divided into two types: direct sales and indirect sales. Direct sales are those under which
distributors sell tyres directly to some large users, such as transport, bus and taxi companies, and government and
municipal users. Indirect sales are those under which tyre dealers supply tyres to end users. About 90 distributors and
approximately about 110,000 tyre dealers supply replacement tyres. In addition, the component ratio (quantity) of sales
for each channel in 2017 is 28.3% for original equipment, 45.4% for replacements and 26.3% for exports.
Manufacturers
Automobile
Cars for Export
Original Equipment
Cars for
Domestic Use
Service Stations
Tyre Manufacturers Replacement Distributors Business Users
Car Repair Shops
Automobile Parts Retailers Private Users
approx. 90 distributors
Others
approx. 110,000 dealers
Trading Companies
Export
80
45.4%
41.1% 42.9% 43.4% 43.6% 44.2%
60 33.9% 38.4% 36.0% 39.6%
Replace-
ment
40
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
18
V. References
3. Raw Materials
More than 100 raw materials are used in the production of automobile tyres, including rubber, reinforcing agent, tyre cord,
compounding ingredients and bead wire.
The percent distribution in weight of raw materials varied depending on the tyre category, it used in tyres was
approximately the same as the previous year, rubber constituting about half of a tyre (natural rubber 30% and synthetic
rubber 21%), next comes reinforcing agent (carbon black) 25%, and then tyre cord 14%.
Table 17: C
onsumption of main raw materials used in
Table 16: Basic composition automobile tyres in 2017
Composition Examples Raw Materials Consumption (tons) 2017/2016(%)
Rubber Natural rubber, Synthetic rubber Natural rubber 595,027 99.5
Reinforcing agent Carbon black, Silica Rubber Synthetic rubber 417,281 100.4
Steel cord, Textile cord Total 1,012,308 99.9
Tyre cord
(Nylon, Polyester, Rayon, etc.)
Reinforcing agent (Carbon black) 476,946 99.0
Vulcanizing agent,
Steel 217,683 102.4
Compounding Vulcanizing accelerator,
Nylon 15,541 88.8
ingredients Vulcanizing accelerator aid,
Polyester 41,295 102.8
Antioxidant, Filler, Softener etc. Tyre cord Textile
Rayon 3,734 95.0
Bead wire
Others 476 140.4
Total 278,729 101.5
Source: JATMA
19
4. Tyre Production Worldwide
According to IRSG (International Rubber Study Group) research, it is estimated that the total production of tyres of the
world of 2017 was 16.55 million tons, increased by 2% from the previous year.
By region it is estimated that the Asia and Oceania region takes up 67% of the world production, of which China accounts
for 40% and Japan accounts for 6%.
Table 18: Share of world tyre production by geographic region (units×103 tons (produced rubber))
composition
2014 2014/2013(%) 2015 2015/2014(%) 2016 2016/2015(%) 2017 2017/2016(%)
ratio(%)
Asia and Oceania 10,184 105 10,112 99 10,727 106 11,010 103 67
(China) (6,027) (106) (5,952) (99) (6,484) (109) (6,607) (102) (40)
(Japan) (1,119) (101) (1,049) (94) (1,007) (96) (1,031) (102) (6)
Europe, Middle East and Africa 2,789 102 2,873 103 2,969 103 3,019 102 18
North, South and Central America 2,721 102 2,528 93 2,523 100 2,522 100 15
Total 15,694 104 15,513 99 16,218 105 16,551 102 100
N.B.: Each value is rounded, so the total doesn’t match. Source: IRSG (International Rubber Study Group)
China
700
Japan North, South and Central America
700 700
279 287 297 302
0
2014 2015 2016 2017
272 253 252 252
0
2014 2015 2016 2017 112 105 101 103
0 0
2014 2015 2016 2017 2014 2015 2016 2017
Asia and Oceania
(Excluding China and Japan)
700
0
2014 2015 2016 2017
N.B.: 1. Unit: x10,000 tons (produced rubber) Source: IRSG (International Rubber Study Group)
2. Including tyres other than vehicle tyres.
20
Distribution of Member Firms’ (Full Member) Automobile Tyre Plants
(July 2018)
Aug. 2018
TYRE INDUSTRY
OF JAPAN
2018
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Time-series Statistical Tables
【Contents 】
1. Production of automobile tyres and tubes
6. Sales of summer tyres and winter tyres for replacement(for four-wheeled vehicles)