16 © TechSci Research Automotive Industry Brief Increasing automobile sales and increase in exports to drive the demand for China commercial vehicle tire market for the forecast period . According to TechSci Research report, “ China Commercial Vehicle Tire Market - By Country, By Company Forecast & Opportunities, 2026 ”, China commercial vehicle tire market was valued at over USD 25 billion in 2020 and is forecast to grow at a CAGR of 13 . 21 % to reach USD 54 billion by 2026 . China is the home to the world’s largest commercial vehicle fleet size in the world . Consistent increase in vehicle sales and high tire replacement demand is contributing to the growth of the commercial vehicle tire market . A key factor aiding the growth of the commercial vehicle fleet in the country is the growth in industrial and construction projects . In 2019 , the Chinese government approved 26 infrastructure projects with a total expected investment of USD 142 billion ( 981 . 7 billion yuan) spread over forthcoming years, according to the National Development and Reform Commission (NDRC) . China is the leading manufacturer of commercial vehicles in the world . According to the data published by OICA, in the year 2020 , the number of commercial vehicles produced in the country stood at 5 . 23 million units which grew significantly compared to 4 . 36 million units in 2019 , in spite of lockdown imposed in certain parts of the country in Q 1 , 2020 . In China, there are about 200 registered automotive companies, making it the largest number of automotive manufacturers in the world . Due to the high number of vehicle production, the demand for tires from OEMs is also high in the country . Coupled with the largest fleet size for commercial vehicles, China is a prominent commercial vehicle tire - producing country due to high replacement demand . In addition, the number of manufacturing plants for tires is significantly higher than the rest of the world, owing to the lower production costs for tires in China compared to other countries due to lower labor costs and ease of raw material availability both domestically and nearby countries . These factors are aiding the rise in demand for commercial vehicle tires in the country . China is one of the countries with the largest production volume of natural rubber worldwide . Moreover, raw materials like synthetic rubber, carbon black, accelerators, oil, etc . to manufacture tires can be found in abundant quantity at in China as compared to any other country . Due to this, the tire manufacturing costs are much lower in the country . On account of low tire prices with advanced technology, Chinese commercial vehicle tire brands are gaining market share in various regions across the globe . People are showing interest in Chinese tire brands owing to improving technology at lower prices compared to other international commercial vehicle tire brands . This factor is going to drive the Chinese commercial vehicle tire market in other regions of the world . China commercial vehicle tire market is segmented into vehicle type, demand category, tire construction type, price segment, and company . On the basis of vehicle type the market is bifurcated into truck and bus/van . Among all the Bus/Van tires sold in China, van tires held the largest share of 65 . 28 % in 2020 . The segment is expected to grow at a robust pace and reach 14 . 98 million units in 2026 . With the increasing population of daily commuters, the market penetration of buses/vans is increasing . Moreover, the demand for electric vans is increasing rapidly as well . Leading players operating in China Commercial Vehicle Tire market include Hangzhou Zhongce Rubber Co . Ltd . , Giti Tire (China) Investment Company Ltd . , Sailun Group Co . , Ltd , Kumho Tire China Co . , Inc . , Triangle Tire Co . Ltd . , Hankook Tire China Co . Ltd . , Double Coin Holdings Ltd . , Aelous Tyre Co . Ltd . , Prinx Chengshan (Shandong) Tire Company Ltd . “In China, the significant majority of commercial vehicle tire demand is generated by the replacement segment . In 2020 , the replacement category held 71 . 58 % of the share in terms of volume . Retail outlets increase the effectiveness of after - sales services for tires and provide technical support pertaining to the tires . This helps tire companies to increase their brand awareness and satisfaction among customers . New players are advised to invest in tire sales via tire service centers . This is emerging as the latest market diversification strategy adopted by renowned commercial vehicle tire manufacturers . ” said Mr . Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm .