China tire orders weaken MoM as production cuts loom in late April

Pre-price-hike stockpiling in March pulled demand forward, dragging down China's PCR and TBR orders in April. With high channel inventories and persistent export headwinds, the market has entered a destocking phase, raising the prospect of production cuts by late April.

April tire orders weakened month-on-month. For passenger car radial (PCR), only 33% of exporters saw a rise, while 58% remained flat. For truck and bus radial (TBR), 78% reported stable orders and 20% posted a decline. Domestic sales were pulled forward and export headwinds intensified, leading to inventory builds.