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Green tires are energy-saving, environmentally friendly, safe, and economically in line with industry development trends and are expected to replace traditional tires

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Whether green tires can be successfully promoted among downstream OEMs and even end-consumer customers depends on their cost-benefit ratio. In other words, it is not enough to consider only the positive social effects, but also to consider whether it can form an incentive mechanism for consumers. Various authoritative reports have discussed the advantages of green tires with good elasticity, low rolling resistance, low fuel consumption, low heat generation, wear resistance, puncture resistance, large carrying capacity, and comfortable riding.
 
Throughout the history of tire development, from the initial solid tire to the bias tire, to the radial tire, and finally to the current green tire, it is a process in which tire rolling resistance is continuously decreasing. Green tires have obvious advantages compared with ordinary tires.The data shows that it is 25% .When the speed is down, the rolling resistance is improved by 20% .The fuel consumption can be saved by about 5%, which can reduce carbon dioxide emissions. Save fuel costs for car owners. However, the fuel consumption can be saved by 5%. This improvement is not obvious and has no statistical significance. This is a potential risk.
 
Anxin Securities made a speculation, measuring the cost and benefit of purchasing green tires by end consumers. Green tires are currently about 30% more expensive than regular radial tires of the same specification. We have calculated an ordinary car with 4 tires. If all 4 tires are replaced with green tires, it only takes about 1 year to recover the cost by saving fuel expenses. Under normal circumstances, the life cycle of 4 tires can reach 60,000 kilometers (about 4 years of service life). In other words, in the remaining 3 years, the fuel cost savings through green tires are all benefited by car owners.

Therefore, the upgrade from ordinary radial tires to green tires has strong economic benefits for car owners. Of course, this deduction is based on the use of green tires to save fuel consumption by 5% -­ 7%. Green tires are undoubtedly a big trend, but we still have to consider that their progress in China may be lower than expected, because the risk-benefit ratio is not obvious, and the national mandate does not necessarily guarantee the smooth implementation, just like the appliances and air conditioners The mandatory energy consumption label on the refrigerator was implemented. In the end, many manufacturers are simply trying to catch fish in troubled water to cheat energy-saving subsidies. Most end consumers are basically short-sighted, and considering only immediate benefits, it is likely that they will not pay for green tires.
 
In 2012, the global green tire market was approximately USD 44.8 billion, accounting for approximately 25% of the global tire market; it is expected that by 2017, the global green tire market will reach USD 70 billion, with a compound annual growth rate of 9.5%, accounting for 35% of the global tire market. From the perspective of regional distribution, the European green tire market is becoming saturated, while Asia and North America have become the main regions for the growth of the green tire market.

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