China's automobile market shows Q1 divergence, tire demand to get Q2 lift

The divergence in Q1 automobile market led to mixed trends in tire demand, with PCR tire demand decreasing yet TBR tire demand increasing. While, the tire demand is expected to improve in Q2 amid multiple factors like persistent geopolitical risks, high oil prices, auto shows, and consumption stimulus policies.

China's automobile market posted mixed results in the first quarter of 2026, with passenger vehicle output and sales declining while commercial vehicles continuing to grow. China Passenger Vehicle Production & Sales, 2024-2026 (Unit: '000 units) Source: CAAM, OilChem China Commercial Vehicle Production & Sales, 2024-2026 (Unit: '000 units) Source: CAAM, OilChem According to data