The entry of internet giants has sounded the alarm for the tire industry.

　　Recently, Tencent joined forces with Tuhu Auto to launch the “Tenghu Plan 1.0.”

　　Under this initiative, Tencent’s WeChat has begun to engage in precision‑targeted automotive‑owner marketing.

　　An industry insider told Tire World Network that in 2018, online tire retailers and various new sales channels continued to challenge and erode the traditional tire distribution network, leaving it in a difficult position.

　　Not long ago, at the Frankfurt Auto Parts Exhibition in Shanghai, e-commerce platforms such as Tuhu and JD.com all set up booths.

　　Seeing the steady stream of visitors at these exhibition booths, a marketing executive from a tire company remarked: “2018 is clearly different! Internet giants are all entering the fray—backed by deep pockets and robust online resources—and this could truly reshape the automotive aftermarket landscape.”

　　This trend of transformation has become particularly evident since the end of 2017.

　　In late November last year, JD.com completed its acquisition of Taoqi Dangkou.

　　On August 22, 2018, Tmall Auto joined forces with Auto Superman and Kangzhong Auto Parts to establish XinKangzhong.

　　In September, Tuhu Auto completed a new round of financing totaling approximately US$450 million, with Tencent becoming one of its investors.

　　With the entry of internet giants, the automotive aftermarket has entered the era of “big players.”

　　Along with this, tire manufacturers—whether proactively or reactively—have been making their own choices.

　　Brands such as Goodyear and Cooper have signed strategic cooperation agreements with JD.com.

　　Zhongce Rubber has begun developing “Zhongce Car Space” and announced that it will gradually open up its capital and resources.

　　Meanwhile, several tire manufacturers have issued statements indicating that they have repeatedly discovered unauthorized listings of their branded tires on domestic e‑commerce platforms such as Taobao, JD.com, and Pinduoduo, and that they will not provide warranties or after-sales service for such products.

　　The tire companies that issued statements include Cheng Shin Rubber, Linglong Tire, Wanli Tire, Shuangqian Tire, Fengyuan Tire, Longyue Rubber, and Qingdao Aobashishi, among others.

　　A head of the sales department at a tire company stated that current choices could determine the future standing of certain tire brands in China’s replacement‑tire market.

　　Service may become the key to the aftermarket.

　　In 2018, China’s tire sales channels underwent transformation, becoming increasingly competitive.

　　According to incomplete statistics, from January to November, more than 230 tire and related companies applied for deregistration with the industrial and commercial authorities.

　　Among these companies, most are tire retailers.

　　With the advent of the internet era, product prices and gross margins have become transparent.

　　Moreover, the entry of new industry giants has indeed had a significant impact on many tire distributors whose business model relies on arbitrage.

　　How to counter the aggressive “capital predators” and safeguard offline sales channels has become a pressing challenge for many tire manufacturers.

　　Upon hearing the news of the launch of the “Tenghu Plan 1.0,” a senior executive at a tire company posted on their WeChat Moments, saying, “We’re ready too.”

　　In his view, if tire distribution channels were to fall under the control of e‑commerce platforms, tire manufacturers would lose all bargaining power.

　　According to Tire World Network, among those working in the tire industry, a significant number disagree with the view that “the automotive aftermarket has already settled into a final structure due to the entry of major players.”

　　The executive said, “The aftermarket is unlike other consumer goods—knowing cars and delivering quality service are what really matter. Leveraging the internet can quickly drive traffic, but if you don’t understand vehicles and your service fails to satisfy car owners, you end up hurting both customers and their trust in after-sales support.”

　　(This article is an original work of Tire World Network. Please indicate the source—Tire World Network—when reprinting.)