DRC TBR Tire benefits from tire market
The exciting development trend of the automotive industry has brought opportunities for parts suppliers. Among them, high-quality tire manufacturers such as Kingtire Vietnam (KTV) or Casumina (CSM) benefit, especially DRC TBR Tire with the new radial tires line…
5 Reasons Drc TBR Tire Benefits From Tire Market and Strong Growth
New Car Models and New Partners co-operation with DRC TBR Tire
The automobile manufacturing market has been active since the early days of 2021 when attracting many investors to participate with many advanced products to co-operation with DRC TBR Tire.
Typically, Vinfast has just introduced to the market the first electric car model VF e34, Vin President, Vin Lux,… a number of other companies are also participating in the Vietnamese car market.
DRC Tire ‘s factory is operating at full capacity in the end of 2021 and we have a plan to expand factory with capacity producing over 3 million tires per year in next year to responces the increasing needs of partners.
DRC TBR Tire believes the prospect of Vietnam’s automobile industry in the long-term is still very optimistic
In a recently published report, Bao Viet Securities Company (BVSC) assessed that the prospect of Vietnam’s automobile industry in the long-term is still very optimistic and DRC TBR tire Stock will be pull up Strongly because Vietnam’s car ownership rate is still low. , the growing middle-income class and increasing infrastructure investment.
In 2021, BVSC maintains its forecast that industry sales volume will recover significantly, reaching 330,315 units, up 11.4% YoY, boosted by low interest rate environment and post-improving consumer confidence. pandemic. Thereby, this is a main reason to explan for DRC tire will be strongly growth at the end of 2021.
The quality of Vietnam’s road traffic system continues to improve, and the advantages of DRC TBR tires
According to research firm TechSci Research, the quality of Vietnam’s road traffic system continues to improve, and the advantages of radial tires over traditional bias tires will be clearer.
This creates a growth advantage for companies that already have radial tire factories, such as Kingtire Vietnam, Danang Rubber jsc ( DRC TBR tire ) and Casumina.
DRC TBR Tire – cost advantages, especially logistics costs
It can be said that the tire market is fiercely competitive between domestic and foreign brands, especially brands such as Bridgestone, Goodyear, Michellin and cheap tires imported from China.
But DRC TBR Tire with cost advantages, especially logistics costs and strong investments in marketing and distribution chains, domestic tire manufacturers also have a great opportunity to win in the market.
In Vietnam Tire Market, DRC Tire has a large distribution system with more than 250 first-class agents and covers over 90% of tire retail stores across the country; and co-operation with biggest Vietnam Car Brands – example: Auto Truong Hai, Vingroup – Vinfast.
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DRC TBR Tire with many important agreements that have been signed
Besides, export is also a great opportunity for DRC TBR Tire thanks to many important agreements that have been signed such as EVFTA, CPTPP or RCEP.
In the latest information from the Indian Tire Manufacturers Association (ATMA), China’s tire market share is gradually decreasing while the product lines imported from Vietnam and Thailand are gradually improving. significant market share.
DRC TBR Tire – seize opportunities
Taking advantage of this opportunity, DRC TBR Tire and Kingtire Vietnam expanded the factory to double the capacity of radial tires to 1.2 million units/year and will expand factory in next year with capacity 3 million tires.
With the current radial factory performance, DRC Tire will soon reach 100% capacity thanks to the recovery in demand, the plan to increase the capacity of TBR tires (phase 3) from the current 1,200,000 units/year to 3 million units in 2024 will open a new growth phase for Da Nang Rubber ( DRC Tire) in the long term.
The basic investment cost to expand the capacity of DRC Tire is estimated at 1000 billion VND, only 1/3 of the first two phases because the factory and some existing equipment can be utilized.
DRC TBR Tire announced business results
Last year, Da Nang rubber – DRC Tire announced business results with a profit of 356.5 billion VND (up 2.4% over the same period), gross profit margin reached 16.4%, up 14.8% compared to the same period last year. with the same period.
The business situation of DRC TBR Tire accelerated in the last months of the year after being negatively affected by the drop in demand due to the impact of the Covid-19 epidemic and high selling costs when competition increased. increase. Especially, export volume last year recorded strong growth in most major export markets such as the US and Brazil.
Forecast at the end of 2021, business results of DRC Tire will be up to 5% , gross profit margin reached 21%, up 16% compared to the same period last year. with the same period to help the price of DRC Tire Stock pull up strongly.