Once dismissed for quality concerns, Chinese tyre makers are steadily challenging legacy brands through localisation, OE wins and performance-driven branding. At the forefront is Linglong Tire, which is fast becoming a strategic force in Europe. From securing OE fitments with Stellantis, Volkswagen, Renault Group to launching a high-tech plant in Serbia, Linglong is leveraging smart manufacturing, targeted dealer engagement and sports sponsorships to elevate its brand. While most view OE as a branding tool with thin margins, Linglong claims real profitability, underpinned by market knowledge and pricing precision. Its lean model, combined with bold ambitions, signals a new chapter in global tyre competition.

A common perception associated with Chinese goods that still lingers across economies is ‘inferior quality’. The same fate had befallen Chinese tyres but is gradually changing. Today, Chinese brands are very competitive with global brands including the big names.

Speaking to Tyre Trends, Linglong Tire Head of Marketing Wolf Fuder said, “Our technology is now on par with established brands in Europe. However, branding is a different story. We have several tools and strategies. First and foremost is tyre quality. We’re constantly working on it. We have three main strategies to demonstrate the performance and quality of our tyres. The first is investment in original equipment. Being an OE supplier for brands like Fiat or Volkswagen or Renault Group serves as a clear proof of performance.”

OE fitment plays a critical role. The company began with spare tyres but has since made significant progress with OEM partnerships. While OE brings brand credibility, Fuder acknowledges that real profitability lies in the replacement market.

“The second strategy is rigorous testing. We work hard to get our products included in prominent magazines in Germany, Northern Europe, UK etc. Sometimes we invite testers to observe our testing processes. We’ve received strong results from the Rubber and High-Tech Centre, which we show to both our dealers and customers as proof of performance of our tyres,” he added.

The executive noted that different customised strategies are deployed across markets. In Europe, it offers a 30-day money-back guarantee. “We have partnered with major football clubs like Real Madrid and Chelsea to feature our logo. Football is a key long-term branding tool for us. Our goal is to have one strong club partnership in each European country. We’ve already partnered with Wolfsburg (partnership not extended yet) in Germany and we’re looking for similar opportunities in Italy and France,” noted Fuder.

Beyond sports sponsorships, it invests in advertising and trade fairs. “While branding is certainly about reaching the end user, it’s actually even more important to win over the dealer. In Germany, and across much of Europe, dealers are the real decision-makers in 80–85 percent of purchases. They’re the key link between the tyre and the consumer,” contented Fuder.

As Linglong Tire deepens its European presence, the company’s strategy is increasingly anchored by its manufacturing facility in Serbia. When asked about the company’s performance in the region post-Serbia plant inauguration, Fuder noted that the transition is still underway as ramping up the factory to its full capacity of 14 million passenger car radial (PCR) tyres per year takes time.

Despite that, he expressed satisfaction with the plant’s current progress and emphasised that the facility now supplies tyres to its European dealer network alongside existing exports from China. While imports from China continue, the long-term goal is to gradually shift the supply focus towards European production, making Serbia the primary hub for the region.

The localisation strategy also aligns with its ambition to expand volumes and competitiveness in Europe. In terms of production mix, Fuder confirmed that the Serbian plant manufactures a full range of tyre sizes, from 13 and 14 inches all the way up to larger sizes like 21 and 22 inches.

Notably, while certain older tread patterns continue to be produced in China, newer lines such are exclusively manufactured in Serbia.

To strengthen its presence there, Linglong Tire is launching marketing campaigns in Italy and the UK, expanding its social media footprint in Europe and preparing localised websites in six key markets including Germany, UK, Spain, Italy, France and Serbia.

7+5 STRATEGY

Linglong Tire’s long-term ‘7+5’ global strategy is a framework guiding the company’s international growth trajectory. It represents the vision to operate seven manufacturing plants in China and five international plants across strategic global locations.

(Linglong’s Thailand facility, part of the company’s international expansion strategy)

Currently, Linglong Tire’s international footprint includes operational facilities in Thailand and Serbia with a third under development in Brazil. Two more international sites are yet to be finalised.

Linglong Tire describes its Serbia facility as a ‘smart factory’ equipped with state-of-the-art machinery and designed for eco-efficiency and automation. “Our newer factories in China are also smart but Serbia features the most advanced setup,” explained Fuder.

The facility initially focuses on PCR tyres. In phase-two, production is expanding to include TBR and OTR tyres for agriculture and mining. These were previously made in China but are now shifting to Serbia.

This diversification also helps Linglong Tire avoid global tariffs, particularly in TBR and possibly in the near future in PCR as well, which has been impacted by import duties. “We had set up our Thailand plant earlier to avoid duties. Now, TBR tyres are exclusively produced in Serbia for Europe,” the executive said.

He also highlighted the plant’s 94/100 sustainability score, citing efforts across the supply chain, sustainable materials etc.

Answering why the company selected Serbia for its plant, Fuder explained, “Serbia is very well-connected to China and offers attractive incentives. These include subsidies, affordable land and economic advantages related to labour and operations.”

“The country’s appeal is evident as other tyre manufacturers also explore the region. While some competitors are evaluating sites in Poland or Romania, we secured the Serbia deal nearly six years ago, well before current market shifts,” he added.

Linglong Tire is actively working to expand its presence in Europe through a focused strategy combining dealer partnerships, OE fitment and targeted aftermarket engagement. Currently, the company operates with a relatively small European sales team, which it plans to scale up.

Rather than disclosing an exact dealer count, Fuder emphasised the company’s reliance on key wholesalers across Europe to maximise reach. In countries like Germany, where there are over 4,000 tyre dealers, wholesalers are seen as the most effective distribution route today, especially when supported by local warehousing.

MARKET INTEGRATION

Penetrating the OEM tyre supply chain has always been challenging, given the stringent validation and approval timelines. Traditionally, tyre development took several months, but as the automotive development cycle is accelerating, tyre manufacturers are under pressure to deliver faster without compromising performance.

“Today, companies like Renault are using virtual development loops followed by physical testing, reducing total car development time to under two years. This means tyre development must be completed within 12 to 14 months,” noted Enrico Staffini, the company’s Deputy Director Europe OE Sales.

The key challenge now lies in balancing performance requirements, particularly around rolling resistance, which is critical to meeting emission targets. “OEMs are no longer asking for just A-class tyres. They want A+ and A++ in rolling resistance, which directly impacts wet grip and wear life. There’s no breakthrough material yet that solves all these trade-offs, so we’re constantly optimising within limits,” he added.

Homologation requirements are prioritising rolling resistance, pass-by noise and mileage – metrics that all tyre makers must hit to stay competitive. Linglong Tire has been able to break into this tough segment in part due to its experienced team and its Serbian plant.

“I’ve been doing OE development for over 10 years and we started building this up at Linglong with early SKUs. Then came a turning point, when OEMs needed to cut costs and opened a door for us. Now, Stellantis, Renault and Ford are key OEM partners for us including Volkswagen,” said Staffini.

The industry itself is evolving. In the past, OEMs relied on just three or four tyre suppliers. But economic pressures are forcing change. OEMs now work with up to 12 suppliers, including brands like Kumho, Nexen, Falken, Apollo, Giti, ZC Rubber, Sentury, CEAT and Linglong.

As premium brands exit smaller tyre segments and OEMs expand their supplier base, agile and cost-effective manufacturers like Linglong Tire are seizing the opportunity to scale faster in Europe’s OEM ecosystem.

Another perception about the OE market is of low-margin. But Staffini strongly disagrees with that notion, pointing to recent developments in the company’s European operations as proof.

The company has strategically hired experienced specialists who are well-versed in pricing dynamics, supply chain management and competitive positioning. This expertise allows it to avoid aggressive undercutting.

For Linglong Tire, OE fitment is a crucial tool for building brand visibility in Europe. Unlike established players like Michelin, it benefits from the ‘pull effect’ when consumers see its tyres on new vehicles, helping drive replacement sales in a market where dealer influence is limited.

Sustainability is now a core requirement from OEMs and the company is undergoing independent assessments covering green materials, emissions, labour rights and production ethics.

It is also producing EV tyres in Serbia, but the ICE segment remains dominant due to slow EV adoption caused by high infrastructure costs. It is also expanding in TBR and agricultural tyres, starting to work with OEM like CNH and already supplying trailer tyres to Krone, while other trailer manufacturers are in the pipeline.

MARKET INFLUENCES

In light of ongoing global trade tensions and fluctuating tariffs, Chinese tyre manufacturers are increasingly realising the need to localise production rather than rely solely on exports.

In response to global anti-dumping tariffs, Linglong is also shifting its OE production for PCR and TBR tyres from China to Serbia. This move is not only meant to serve the European market but also offers flexibility to export to tariff-heavy markets like Brazil and US, where shipping from China is no longer commercially viable.

Being the first Chinese tyre manufacturer with a plant in Europe positions Linglong Tire strategically, giving it regulatory agility, tariff advantages and proximity to OEM customers in a fast-evolving global market.

“There’s already ongoing debate in Europe about PCR tyre tariffs and the situation is even more unpredictable in the US. While US tariff policies on Chinese goods have yet to reach an affirmative structure, European Union is seen as more stable,” said Fuder.

Besides the tariffs, major tyre manufacturers in Europe are exiting the small-size tyre segment and instead focusing on larger, high-margin products. This has come as a boon-in-disguise for Chinese tyre makers.

“Premium brands are stepping away from small-size tyres because the margins don’t suit their high-cost structures. But those same tyres are still profitable for us. We’re growing in both market share and profitability and doing so quite comfortably,” noted Staffini.

“Big companies are realising they’re too complex with too many departments and overheads. Now everyone wants to become as lean as the Koreans,” he added, citing Goodyear’s recent large-scale restructuring in Europe.

This industry transition is also redefining distribution and manufacturing. As tyre makers cut direct ties with retailers due to high servicing costs, wholesalers are increasingly taking over logistics and customer interface roles.

“Setting up a plant in Europe is capital-intensive and many do it to serve OEMs. But OEM business is brutally expensive. Total tyre development costs can range from EUR 300,000 to EUR 1 million for regular cars (high-end cars, like Porsche or others, can be easily more), depending on specifications and performance requirements. You also need specialised technology, engineers, testing facilities and logistics,” said Staffini.

In this high-cost, high-pressure environment, Linglong Tire’s lean approach and focus on both small and large tyre segments is giving it a competitive edge.

Furthermore. with the upcoming Euro 7 regulations, OE tyre suppliers like Linglong Tire face new performance demands. These targets are becoming increasingly stringent, requiring not just material innovation but end-to-end process optimisation.

The manufacturer’s Serbia plant gives the company a structural advantage. However, Staffini stressed that automation alone isn’t enough. Stabilising production, especially at a new site, takes time. Transferring moulds from China to Serbia, for example, isn’t a plug-and-play task. It requires fine-tuning and iterative testing to ensure performance consistency and final approval from OEM customers.

SEGMENTATION

Linglong Tire sees the OTR tyre market in Europe as fairly stable with the agriculture segment slightly down by around four percent in early 2025. Historically, the market has fluctuated, and while forecasts indicate slow growth over the next 4–5 years, it’s not expected to expand rapidly.

Another major trend is the shift from tier-I (premium) brands to tier-II and tier-III. Sales of mid-range and budget tyres are increasing, while premium brands like Continental are pulling back from the market. This shift is driven by both economic pressures and improved quality of Chinese and Indian tyres, which now offer better cost-per-hour and competitive performance.