On November 6, 2025, the European Commission officially announced the initiation of a countervailing investigation into new pneumatic rubber tires for passenger cars and light trucks originating from China-1. This action stems from an application submitted by the EU industry group "the Coalition Against Unfair Tyre Imports" on September 22, 2025. The investigation covers tires for motor vehicles, buses, and trucks with a load index not exceeding 121, falling under EU CN codes 4011 10 00 and 4011 20 10-4. The investigation will review subsidy information throughout 2024, with the injury assessment period spanning from 2021 to 2024, and is expected to profoundly impact the future tire trade landscape between China and Europe-10.

Concurrently, the global tire industry is accelerating its transformation towards intelligence and sustainable development. Pirelli's Cyber Tire technology won the "V2X Innovation of the Year Award" in October 2025. It utilizes built-in sensors to monitor tire pressure, temperature, and wear data in real-time, connecting with vehicle electronic systems to significantly enhance driving safety and dynamic performance-8. Michelin also showcased its CrossClimate series tires at the 8th China International Import Expo, designed for frigid regions using diamond-cut tread patterns and temperature-control technology rubber to address winter driving challenges around 37° north latitude-7. Technological innovation and trade policies are jointly reshaping the competitive logic of the truck tire industry.

Escalating Trade Barriers: Countervailing Investigation Triggers Industry Chain Reaction

The EU's countervailing investigation focuses on whether Chinese tire companies have gained unfair competitive advantages through policy subsidies-10. During the investigation, the European Commission will collect evidence on corporate financing, tax breaks, and raw material procurement. If affirmed, Chinese-exported light truck tires could face high countervailing duties or even quota restrictions. This move represents a further step following previous EU "dual anti" (anti-dumping, anti-subsidy) investigations into Chinese truck tires, aiming to protect local industries such as EU member companies like Continental and Michelin-9.

China's tire export market may undergo structural adjustments as a result. According to Huatai Securities analysis, EU trade barriers will accelerate Chinese tire companies' efforts to "export indirectly" via overseas bases-9. For instance, Sailun Tire's factory in Vietnam and Sentury Tire's base in Thailand, not being "involved production areas," can circumvent EU tariffs. Simultaneously, some enterprises might shift focus to emerging markets like the Middle East and Southeast Asia to offset potential declines in European orders. Chinabgao points out that this investigation not only assesses product competitiveness but could also serve as a policy reference for other trading partners, further prompting global supply chain restructuring-10.

Accelerating Technological Revolution: Smart Tires Redefine Industry Standards

Against the backdrop of a tightening trade environment, technological innovation in tires has become key for corporate breakthroughs. Pirelli's Cyber Tire system uses built-in sensors to collect real-time data on tire pressure, temperature, load, and tread wear, transmitting it via proprietary algorithms to vehicle Electronic Stability Program (ESP) and Anti-lock Braking System (ABS), optimizing braking distance on wet roads and steering precision-8. This technology is already applied in high-end car models like Aston Martin and plans to expand into the commercial truck sector, aiding digital fleet management-8.

Michelin addresses extreme environment challenges through material innovation. Its CrossClimate series tires utilize temperature-control technology rubber, maintaining flexibility across a -30℃ to 10℃ temperature range, coupled with diamond-cut tread patterns to enhance snow braking efficiency-7. Meanwhile, the Primacy 5E tire employs a dual-tread design to reduce rolling resistance and carbon emissions, aligning with the global logistics industry's green transition needs. These technologies not only extend tire life but also ensure maintained drainage and grip even in later wear stages through designs like "hidden grooves"-5.

Diverging Market Trends: Cost Pressure and Green Transition Proceed in Parallel

The global tire market exhibits dual characteristics of "total volume growth and structural differentiation." According to 6Wresearch data, the global tire market was valued at USD 265.8 billion in 2024 and is expected to reach USD 387.2 billion by 2031, with a compound annual growth rate of 5.4%-6. Growth drivers include new energy vehicle adoption, rising demand for high-durability tires, and expansion of the replacement market-6. However, price fluctuations of raw materials like natural rubber and carbon black pressure corporate profits, leading domestic companies like Zhongce Rubber and Wanli Tire to collectively raise TBR (Truck and Bus Radial) prices by 2%-4% in November 2025-9.

In segmented markets, demand for electric heavy-duty truck tires is rising notably. In June 2025, electric heavy-duty truck registrations in China exceeded 15,000 units, with a penetration rate of 24%, driving tire companies to develop high-load, low-rolling-resistance products-9. Hankook Tire's launched "TH39" 20-ply tire, targeting the increased axle load from electrified car transporters, adopts a low heat-generation tread compound and optimized bead structure to ensure durability under high-torque conditions-2. Additionally, retreaded tire technology gains policy support due to its alignment with circular economy principles – the EU plans to increase the truck tire retreading rate from 50% to 70% by 2030-10.

Corporate Strategy Adjustments: Dual Drivers of Global Expansion and Localized Innovation

To counter trade barriers, Chinese tire companies are accelerating global production capacity layout. Huatai Securities research reports indicate that leading enterprises with "non-involved bases," such as Sailun Tire (Vietnam factory) and Sentury Tire (Thailand base), can circumvent EU tariffs through capacity allocation-9. Meanwhile, projects like Linglong Group's Serbia plant and Zhongce Rubber's Thailand base leverage local free trade agreements to reduce logistics costs and proximity to end markets. This "overseas localization" model not only mitigates trade friction but also utilizes Chinese supply chain advantages for cost control.

Localized cooperation in technological innovation is deepening. Michelin China Vice President Li Jing stated that China has become the brand's "innovation hub"-7. During the CIIE, Michelin signed multiple cooperation agreements with logistics enterprises to promote the integration of tires and vehicle networking systems. Pirelli, collaborating with Bosch Engineering, achieved complete integration of Cyber technology into vehicle electronic architectures, providing real-time road condition warnings for autonomous trucks-8. These collaborations confirm the development logic driven by "technology + scenario" – only by precisely matching regional needs can advantages be established in competition.

Industry Outlook: Compliance and Innovation as Future Core Competitiveness

Short-term, the outcome of the EU countervailing investigation will directly impact China's tire export structure in 2026. If high duties are imposed, some SMEs might be forced to exit the European market, while leading companies, leveraging overseas bases and technological advantages, could further consolidate market share-10. Medium to long-term, the deep integration of smart tires and vehicle networking will become an industry watershed. Pirelli CTO Piero Misani emphasized: "Tires are evolving from components to sensing terminals; their data value will reshape supply chain efficiency"-8.

Furthermore, tightening green regulations are forcing industrial upgrades. The EU's Circular Economy Action Plan requires tire companies to increase the proportion of renewable materials and establish carbon footprint tracking systems-10. Chinese enterprises need to simultaneously monitor policies like CBAM (Carbon Border Adjustment Mechanism), reducing production phase carbon emissions through photovoltaic power and bio-based material applications. Future competition in the tire industry will be a comprehensive contest involving trade compliance capability, technological iteration speed, and sustainable development level.