2006 JATMA - Japan Tire Industry 2006

h t t p : / / w w w . j a t m a . o r . j p

THE JAPAN AUTOMOBILE TYRE MANUFACTURERS ASSOCIATION,INC.

2006

TYREINDUSTRYOF JAPAN

Contents

I. Brief History of the Japanese Tyre Industry 2II. The Japanese Tyre Industry Today 4

1. Overview 42. Supply and Demand of Automobile Tyres 5

1) General Situations of Supply and Demand 52) Production Trends by Tyre Category 63) Trends in Sales of Original Equipment Tyres 74) Trends in Sales of Replacement Tyres 85) Trends in Supply and Demand of Winter Tyres 96) Trends in Sales of Export Tyres 107) Exports by Region of Destination 118) Imports by Region of Origin 12

III. Measures for Tyre Safety 131. Safety Standards for Automobile Tyres 132. Tyre Standards 133. Legal Limits on Tread Wear 144. Product Inspection 14

IV. Consideration for Environment 151. Approach to “Reduce” 152. Recycling Situation 16

V. Reference 181. Automobiles and Tyres 182. Distribution Channels 193. Raw Materials 204. Tyre Production Worldwide 21

The Japan Automobile Tyre Manufacturers Association, Inc. 22JATMA Member Firms 23Distribution of member companies’ automobile tyre plants

2

I. Brief History of the Japanese Tyre Industry

The production scale of the automobile tyre industry of Japan steadily increased from the second half of 1990s to 2000, supported by generally firm demand in the domestic market and active export. Demand slowed for a period in 2001 due to the decline in export mainly for U.S., but afterward the production gener-ally increased steadily. In 2005, while the domestic demand slightly decreased on a rubber consumption basis, exports increased steadily supported by the worldwide active demand for tyres and led by the major markets of North America and Europe. This resulted in the rubber consumption of 1.33 million tons (record high), the number of tyres and the value of 187.37 million units and 1,047.4 billion yen, respectively. The rubber consumption accounts for over 80% of the rubber industry of Japan.Those situations in the past can be surveyed with some steps as follows:

(1) 1940s–1950sThe industry restructured after World War II, following the destruction of facilities and equipment. In the early 1950s, after the long-term government regulation and during the Korean War, the industry enjoyed special procurement and improved tyre demand. However, after the Korean War, deflationary pressures affected the Japanese economy. Demand for tyres decreased sharply, and the tyre market experienced considerable difficulty.

(2) 1960sAround 1960, full-fledged motorization, including increased automobiles on the road and the advent of expressways, spurred the industry toward a technological revolution, including expansion and automation of equipment, as well as changes in the raw materials for tyres, and enjoyed a high-growth phase.

(3) 1970sFrom 1970, the industry suffered demand downturns temporarily as a result of the first oil crisis. However, exports led the growing Japanese economy. Tyre production expanded, as a result of an increase in the number of vehicles produced and registered, and product diversification spurred demand.

(4) 1980sLow economic growth under the worldwide recession following the second oil crisis (1979) combined with the progress of radial tyres, which caused demand downturns, forcing the Japanese tyre industry into a period of extreme difficulty. In 1983, however, a turnaround was seen owing to economic recovery in Japan and in principal nations worldwide. In September 1985, however, tyre demand dropped, influenced by the strong yen. Then in December 1986, the Japanese economy started to grow steadily, backed by solid consumer spending and capital investment. As a result, the volume of rubber consumption reached the 1-million-ton mark in 1989.

(5) 1990sWith the collapse of Japan’s “bubble economy,” the stock market crashed, corporate profits declined, the job environment became uncertain, consumer spending and capital investment slowed, and the yen appreciated causing further deepening of economic stagnation. Signs of recovery were seen in 1995, but in 1997 Japan entered a recession. In 1998 and 1999, large-scale restructuring in the financial sector and the introduction of foreign capital into the automotive industry arose as serious concerns. On the other hand, the global economy in general remained steady despite economic difficulties in Southeast Asia, supported by the robust U.S. economy. In this environment, the Japanese tyre industry grew overall, although rubber consumption fell below the 1-million-ton mark in 1993. Supported by brisk exports, Japanese tyre production volume increased to 1.13 million tons in 1999, a record high.

(6) 2000-2005The Japanese economy was on a trend of gentle recovering, promoting writing off of bad loans although it was still suffering from 1990s problems. In such situation, the year of 2005, although there were factors of anxiety such as continuing rise of crude oil prices, seemed to have entered a period of stable growth with bright prospects of circumstances surrounding income and employment and supported by solid consumer spending. On the other hand, the global economy as a whole continued to grow supported by the steady U.S. economy and the expanding Chinese economy. In these situations, the demand for tyres in Japan in 2005 on a rubber consumption basis slightly decreased for the domestic market and increased for exports, and as a result both production and sales were record high to be over 1.33 million tons.

3

100,000

0 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1,200,000

1,100,000

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

11,000,000

12,000,000

13,000,000Automobile production

Figure 1: Changes in the Tyre and Automobile Industries

Automobile tyreproductionAutomobileproduction

Automobile tyre production (tons of rubber) Automobile production (number of vehicles)

Source: Japan Automobile Manufacturers Association; JATMA

1950

13,884

31,597

1960

88,330

481,551

1970

376,554

5,289,157

1980

800,156

11,042,884

1990

1,031,035

13,486,796

1995

1,037,196

10,195,536

2000

1,153,850

10,140,796

2001

1,120,217

9,777,191

2002

1,189,714

10,257,315

2004

1,284,493

10,511,518

2005

1,330,816

10,799,659

2003

1,238,903

10,286,318

Automobile tyre production

1,300,000

4

II. The Japanese Tyre Industry Today

1. Overview(1) The production of automobile tyres in 2005 increased 3.6% from the previous year to record high 1.33 million tons due to the rise in replacement and export tyres although original equip-ment tyres decreased. (2) The production ratio of the tyre industry within the rubber product industry (figures 2 and 3) lowered to 82.2% with 0.2 percentage points down in rubber consumption and expanded to 49.3% with 0.1 point up in fiscal value from the previous year. (Ministry of Economy, Trade and Industry’s dynamic statistics).(3) The demand for automobile tyres continues to diversify. The Japanese tyre industry has been promoting in Japan the establishment of 3R (Reduce, Reuse and Recycle) activities with a long range prospect for appropriate disposal of scrapped tyres and the reinforcement of various educational activities for safety, and positively tackling issues in the world such as global har-monization of safety standards for the facilitation of trade.

Table 1: Changes in Japan’s tyre industry within the rubber product industry

Tyre

Non-tyre

Total

19961,076,130

954,485344,801

1,260,0241,420,9312,214,509

19971,105,625

998,028348,615

1,263,4031,454,2402,261,431

19981,101,151

980,547309,780

1,123,9751,410,9312,104,522

19991,134,577

954,044302,841

1,082,9301,437,4182,036,974

20051,313,0591,035,544

284,1741,065,6291,597,2332,101,173

20041,266,353

984,052270,067

1,017,5041,536,4202,001,556

20031,221,309

932,685264,642993,426

1,485,9511,926,111

20021,171,906

920,895261,020992,382

1,432,9261,913,277

20011,120,217

888,066285,382

1,024,8361,405,5991,912,902

20001,153,850

910,466304,361

1,088,0261,458,2111,998,492

Source: Ministry of Economy, Trade and Industrycurrent production statistic

Rubber consumption (tons)

Production value (yen × 106)





N.B.: According to a revision of statistics standards, rubber consumption and production value of ‘Tyre’ for 2002 and later do not include; cart tyres, tubes and flaps.

Figure 4: Changes in production of Japan’s rubber products — rubber consumption and value

Rubber consumption (thousands of tons) Value (billion yen)

0 0

500

400

300

600

700

800

900

1,000

1,100

19971996

Rubber consumption (non-tyre)

1998 1999 2000 20052004200320022001

1,200

1,300

700

600

500

400

800

900

1,000

1,100

1,200

1,300

200

1,400

1,500Rubber consumption (tyre)

Value (non-tyre)

Value (tyre)

Figure 2: Rubber consumption (tons) Figure 3: Production value (billions of yen)

20052005

Tyre:

Total: 2,101.2

1,035.5 (49.3%)

Non-tyre:1,065.6 (50.7%)

Total: 1,597,233Tyre: 1,313,059 (82.2%)

Non-tyre:284,174 (17.8%)

5

2. Supply and Demand of Automobile Tyres1) General Situations of Supply and DemandThe automobile tyre production on a unit basis in 2005, increased 1.7% from the previous year, to 187.37 million tyres. In terms of total rubber consumption, the production was 3.6% up from the previous year, to 1.33 million tons. Sales were 201.85 million tyres with 3.1% increase, which corresponds to 1.33 million tons of rubber consumption with 3.3% increase from the previous year. Both production and sales were the record high. The main reasons for this situation are the rise in the demand for winter tyres in the replacement market caused by countrywide heavy snowfalls in December and the increase in export tyres mainly to U.S. and Europe supported by growing demand of the world for tyres. Original equipment tyres, on the other hand, decreased from the previous year influenced by an increase in imported passenger car tyres.

Figure 5: Trends in automobile tyre production

Table 2: Changes in production and sales of automobile tyres

Production

Imports

Replacement

Exports

Total

1996

167,127

1,076,130

47,842

211,294

74,015

415,191

45,439

445,900

167,296

1,072,385

14,448

69,167

1997

171,963

1,105,625

50,135

224,003

74,286

413,543

49,446

468,759

173,867

1,106,305

16,747

75,350

1998

168,446

1,101,151

47,433

204,029

70,439

388,255

54,138

522,155

172,010

1,114,439

15,548

69,177

1999

172,701

1,134,577

47,467

201,930

71,778

397,981

56,982

544,345

176,227

1,144,256

14,174

61,321

2005

187,373

1,330,816

51,831

230,175

75,251

393,651

74,765

707,354

201,847

1,331,180

29,108

108,538

2004

184,205

1,284,493

52,010

231,393

73,389

392,866

70,432

664,738

195,831

1,288,997

23,793

95,052

2003

181,013

1,238,903

50,515

227,283

71,574

386,722

66,459

632,517

188,548

1,246,522

19,485

77,240

2002

179,443

1,189,714

50,609

214,222

76,885

413,680

59,500

564,662

186,994

1,192,564

18,136

71,837

2001

174,460

1,120,217

48,576

203,003

77,315

416,266

54,754

502,576

180,645

1,121,845

15,987

68,598

2000

176,248

1,153,850

48,662

206,866

75,149

412,849

56,021

531,958

179,832

1,151,673

14,833

64,064N.B.: 1. Number of tyres is the total of automobile and cart tyres.

2. Rubber consumption is the total for tyres, tubes, flaps and rim bands.

Source: METI, JATMA

Rubber consumption (thousands of tons) Millions of tyres

0 0

130

140

150

160

170

180

600

700

800

900

1,000

1,100

120500

19971996

Rubber consumption

1998 1999 2000 20052004200320022001

1,200 190

1,300 200

Sal

es

Original

equipment

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Number of tyres

6

2) Production Trends by Tyre CategoryThe total production of each category of automobile tyres in 2005 (on a rubber consumption basis, which is also applied to the following in this paragraph) exceeded the previous year supported by stable growth of export, although domestic demand slightly decreased (see table 3). All of the three main categories increased from the previous year, truck and bus tyres up 3.9%, light truck tyres up 1.4%, and passenger car tyres up 4.2%. As a result, the production increased 3.6% from the previous year to 1.33 million tons, having been renewing the record high every year since 2002.

N.B.: 1. Rubber consumption for each category is the total for tyres only.2. The figures of truck and bus tyres, and light truck tyres cannot be compared with the previous year because of the shift of sizes between the two categories from 2002.

Table 3: Changes in production of each category of automobile tyres

Truck and bus tyres

Light truck tyres

Cart tyres

Passenger car tyres

Off-the-road, Industrialand Agricultural tyres

Motorcycle tyres

Tubes and Flaps

Total

199611,113

286,23533,591

197,095110,504431,371

2,611123,210

8,19113,7571,1173,316

21,146167,127

1,076,130

199711,063

281,17534,135

203,247115,156457,687

2,652127,415

7,79413,5301,1633,533

19,038171,963

1,105,625

199811,520

297,39830,629

184,831114,609462,742

2,241122,059

7,95714,2861,4904,697

15,138168,446

1,101,151

199912,277

319,00030,437

183,638118,690483,722

2,301116,045

7,37813,8061,6185,043

13,323172,701

1,134,577

200514,633

367,39226,769

176,971134,802617,598

1,965136,343

7,21514,7551,9896,376

11,381187,373

1,330,816

200414,021

353,56226,686

174,534132,386592,679

2,043131,561

6,97314,0172,0966,707

11,433184,205

1,284,493

200313,262

336,27826,630

169,816130,323572,438

2,055128,783

7,07313,9941,6705,147

12,447181,013

1,238,903

200212,184

306,06728,390

176,598127,438550,415

2,011124,322

7,46814,5041,9525,873

11,935179,443

1,189,714

200111,320

282,05929,126

173,901122,459511,721

2,148120,206

7,77115,5571,6364,921

11,852174,460

1,120,217

200011,803

302,63430,892

186,854121,726504,631

2,288126,795

7,93615,3951,6034,808

12,733176,248

1,153,850

Source: METI

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

2003 2004 20052002

13.2

46.3

14.8

25.7

13.0%

46.2%

13.7%

27.1%

Figure 6: Overall production trends (Figures below show percentage of total rubber consumption by tyre type.)

42.0

1996

100

0

200

300

400

500

600

700

800

900

1,000

1,100

1,200

1,300

14.2

16.8

27.0

42.6

13.1 13.9

16.2

28.1

15.0

40.1

18.3

26.6

Rubber consumption (thousands of tons)

1997 1998 1999 20012000

25.4

18.4

41.4

14.8

43.7

16.2

26.2

13.6

45.7

15.5

25.2

12.8%

46.1%

13.6%

27.5%

Others12.7%

Passengercar tyres46.4%

Light truck tyres

13.3%

Truck andbus tyres27.6%

7

3) Trends in Sales of Original Equipment TyresThe sales of original equipment tyres in 2005 decreased both in units and in rubber consumption from the previous year, to 51,83 million tyres, down 0.3%, and 230 thousand tons, down 0.5%, respectively (see table 4). The main reason for this situation is the decline in the sales of tyres produced in Japan due to substantial increase in imported passenger car tyres, although the production of automobiles rose owing to steady demand for Japanese cars with superior fuel economy. The demand for commercial vehicles increased from the second half of the year due to the expansion of target vehicles of regulation for NOx and PM(particulate materials) emitted by vehicles, and when looking at three main categories based on sales units, truck and bus tyres increased 8.3% from the previous year, but light truck tyres decreased 1.3%, and passenger car tyres also decreased 0.9% owing to the above-mentioned effect of the rise in imported original equipment tyres.

N.B.: 1. Rubber consumption for each category is the total for tyres, tubes, flaps and rim bands.2. Totals are for JATMA members and non-members.3. Figures include only domestically produced tyres.4. The figures of truck and bus tyres, and light truck tyres cannot be compared with the previous year because of the shift of sizes between the two categories from 2002.

Figure 7: Original equipment tyre sales trends

Table 4: Changes in sales of each category of original equipment tyres

0 0

30

40

50

60

70

150

200

250

300

350

Millions of tyresRubber consumption (thousands of tons)

1996 1997 1998 1999 2000 2004 2005200320022001

Number of tyres

Rubber consumption

Truck and bus tyres

Light truck tyres

Cart tyres

Passenger car tyres


Motorcycle tyres

Total

1996

79418,0619,408

49,08831,567

119,5811,341

15,1624,0967,351

6362,051

47,842211,294

1997

84618,9139,351

50,86034,001

129,7631,311

15,0023,8917,318

7352,147

50,135224,003

1998

54911,8447,739

40,90232,997

128,3951,089

12,0994,0737,723

9863,066

47,433204,029

1999

4499,9857,132

37,28633,802

131,7631,099

11,8113,7827,4491,2033,636

47,467201,930

2005

1,20720,8096,370

33,17138,633

150,2531,111

14,7642,9796,9871,5314,191

51,831230,175

2004

1,11520,1096,457

34,64738,986

153,310967

12,1532,8186,4081,6674,766

52,010231,393

2003

1,23623,2916,533

33,74237,546

150,244889

10,0323,0066,3261,3053,648

50,515227,283

2002

77614,4966,066

30,41537,954

149,002877

9,3003,4186,7721,5184,237

50,609214,222

2001

72813,8906,548

32,52735,380

135,869946

9,7033,6477,2581,3273,756

48,576203,003

2000

55412,2617,012

36,00335,088

136,5061,065

11,1013,6677,2251,2763,770

48,662206,866

Source: JATMA

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

8

4) Trends in Sales of Replacement TyresIn 2005, replacement tyre sales in Japan increased from the previous year for two consecutive years due to an increase in the demand for winter tyres mainly for passenger cars caused by countrywide record snowfalls in December, with 75.25 million tyres, up 2.5%, corresponding to 390 thousand tons, up 0.2%, of rubber consumption (see table 5). By tyre category on a unit basis, all of the main categories exceeded the previous year due to the above mentioned increase in winter tyres: up 1.7% to 5.49 million in truck and bus tyres, up 0.1% to 14.39 million in light truck tyres, and up 3.7% to 51.30 million in passenger car tyres. (See page 9 of “Trends in Supply and Demand of Winter Tyres”)

Figure 8: Replacement tyre sales trends

30

40

50

60

70

80

90

150

00

200

250

300

350

400

450

1996

Millions of tyresRubber consumption (thousands of tons)

1997 1998 1999 2000 20052004200320022001

N.B.: 1. Rubber amounts for each category are the totals for tyres, tubes, flaps and rim bands.2. Totals are for JATMA members and non-members.3. The figures of truck and bus tyres, and light truck tyres cannot be compared with the previous year because of the shift of sizes between categories from 2002.

Table 5: Changes in sales of each type of replacement tyre

Truck and bus tyres

Light truck tyres

Cart tyres

Passenger car tyres


Motorcycle tyres

Total

1996

4,408109,96917,876

102,59747,478

179,7151,156

18,4282,9604,319

137163

74,015415,191

1997

4,433107,69817,80799,83447,785

182,8451,186

18,3672,9614,445

114354

74,286413,543

1998

3,98396,40016,51992,24646,030

179,6921,042

15,4342,7794,208

86275

70,439388,255

1999

4,214103,99816,69792,48747,407

181,0451,066

15,9442,3244,264

70243

71,778397,981

2005

5,494110,88714,38970,50351,299

190,0061,093

17,9282,9304,132

46195

75,251393,651

2004

5,401112,56614,36872,92749,486

185,1161,093

17,7802,9944,316

47161

73,389392,866

2003

4,893106,97913,70170,56349,037

187,8891,055

16,9022,8434,192

45197

71,574386,722

2002

5,200113,72615,02776,82552,427

203,2921,048

15,4213,1334,202

50214

76,885413,680

2001

5,375118,37015,96581,59451,648

196,1281,091

15,6123,1824,330

54232

77,315416,266

2000

4,322105,53717,16496,55949,361

188,6811,137

17,1163,1044,719

61237

75,149412,849

Source: JATMA

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Number of tyres

Rubber consumption

9

5) Trends in Supply and Demand of Winter TyresProduction of winter tyres in 2005 (see table 6) increased 3.3% on a unit basis from the previous year, to 28.57 million tyres, the second largest volume next to 29.13 million tyres in 1997, where passenger car tyres were record high with 22.08 million units, up 5.7% from the previous year. The main reason for this situation was, in the replacement sales occupying about 75% of the total demand for winter tyres, the demand expansion mainly of passenger car tyres due to the record snowfall in December. The replacement winter tyre sales statistics by category (see table 7) indicate that winter tyres for trucks and buses, light trucks and passenger cars all increased, up 6.2% from the previous year to 2.03 million tyres, up 1.8% to 4.14 million tyres, and up 10.3% to 15.96 million tyres, respectively. The total winter tyres increased 8.2% from the previous year, to 22.13 million tyres, exceeding the previous year for two consecutive years.

Figure 9: Changes in winter tyre production and sales of replacement tyres

Table 7: Changes in number of winter tyres sold for replacement and the share of winter tyres

Table 6: Changes in number of winter tyres produced and the share of winter tyres

15

10

5

0N.B.: Figures from 1998 onward exclude all-season tyres.

20

25

1996 1999 2000 20052004200320022001

Millions of tyres

1997 1998

19962,5785,449

15,25823,285

58.530.532.233.4

19972,6785,432

15,13823,248

60.430.631.833.3

19981,0473,960

13,37018,377

26.324.129.227.7

19991,1784,031

14,10419,313

28.024.129.828.3

20001,2974,467

14,11519,879

30.026.028.628.1

20052,0294,144

15,95622,129

36.928.831.131.1

20041,9114,071

14,46320,445

35.428.329.229.5

20031,6453,589

14,27619,510

33.626.229.128.8

20052,1004,392

22,07928,571

14.316.416.416.2

20042,0704,689

20,89327,652

14.817.615.816.0

20031,7033,866

18,94724,516

12.814.514.514.4

20021,7064,052

16,37822,136

32.827.031.230.5

20011,7414,297

15,92121,959

32.426.930.830.1

N.B.: 1. JATMA members2. The share of winter tyres indicates the number of winter tyres sold for replacement as a percentage of all tyres sold for replacement.3. Figures from 1998 onward exclude all-season tyres.4. The figures of truck and bus tyres, and light truck tyres cannot be compared with the previous year because of the shift of sizes between the two categories from 2002.

N.B.: 1. JATMA members2. The share of winter tyres indicates the number of winter tyres produced as a percentage of all tyres produced.3. Figures from 1998 onward exclude all-season tyres.4. The figures of truck and bus tyres, and light truck tyres cannot be compared with the previous year because of the shift of sizes between the two categories from 2002.

Source: JATMA

19963,4075,169

18,90427,480

30.615.417.117.7

19973,6215,552

19,95429,127

32.716.316.418.2

19981,0754,345

17,61623,036

9.314.215.314.7

19991,2264,231

17,80523,262

10.013.915.014.4

20001,4164,995

17,90624,317

12.016.214.714.8

20021,7844,624

19,43125,839

14.616.315.215.4

20011,7164,875

18,09524,686

15.216.714.815.2

Source: JATMA

Winter tyre production

Truck and bus tyresLight truck tyresPassenger car tyresTotalTruck and bus tyresLight truck tyresPassenger car tyresTotal

No.

of t

yres

prod

uced

( ×

100

0)

Shar

e of

w

inte

r tyr

es (

%)

Truck and bus tyresLight truck tyresPassenger car tyresTotalTruck and bus tyresLight truck tyresPassenger car tyresTotal

No.

of t

yres

sold

for

repl

acem

ent

( ×

100

0)

Shar

e of

win

ter t

yres

(%

)

Winter tyres sold for replacement

10

6) Trends in Sales of Export TyresExports of automobile tyres in 2005 increased for four consecutive years, up 6.2% in unit terms from the previous year, to 74.77 million tyres, and up 6.4% in terms of rubber consumption, to 710 thousand tons, which made the ratio of export to be 53.1%, up 1.5 points from the previous year (see figure 18, page 19). Moreover, the value of exports in U.S. dollars also increased 11.9% from the previous year, to US$4,923.71 million (up 14.0% on a yen basis, to ¥542.4 billion, see table 10, page 11). The main reason for these figures is an active demand for tyres supported by the growing world economy since the previous year. Exports by tyre category on a unit basis were up 7.3% for truck and bus tyres, up 1.8% for light truck tyres, and up 7.3% for passenger car tyres from the previous year.

Figure 10: Export tyre sales trends

0

350

400

450

500

550

650

600

Rubber consumption (thousands of tons)

1996 0

40

50

60

70

80

90

100

Millions oftyres

1997 1998 1999 2000 20052004200320022001

Number of tyres

Rubber consumption

N.B.: 1. Rubber amounts for each category are the totals for tyres and tubes.2. Totals are for JATMA members and non-members.3. The figures of truck and bus tyres, and light truck tyres cannot be compared with the previous year because of the shift of sizes between the two categories from 2002.

Table 8: Changes in sales of each type of tyre for export

Truck and bus tyres

Light truck tyres

Cart tyres

Passenger car tyres


Motorcycle tyres

Flaps and rim bands

Total

19965,913

164,6036,613

51,34029,723

122,751649

95,7242,1714,968

3701,1585,356

45,439445,900

19975,895

162,0327,511

57,31332,823

138,545715

100,2202,1874,934

3151,0164,699

49,446468,759

19987,257

197,4397,466

58,71736,007

153,791675

101,6962,3105,326

4231,3453,841

54,138522,155

19997,817

212,3407,607

60,64037,877

165,777657

94,6862,6666,119

3581,0913,692

56,982544,345

20058,252

232,04910,19286,92452,531

267,417529

108,4592,7476,916

5141,7543,835

74,765707,354

20047,693

217,84810,00883,92148,961

245,576579

105,5832,7986,870

3931,3653,575

70,432664,738

20037,364

210,1409,655

80,38745,611

223,786590

106,2042,8606,982

3791,2623,756

66,459632,517

20026,493

182,3989,684

79,07339,303

187,375606

103,9303,0397,313

3751,1353,438

59,500564,662

20015,569

155,8238,540

67,30236,697

167,554595

100,4183,1007,505

253711

3,26354,754

502,576

20006,699

182,7958,071

63,83737,207

170,049645

104,0323,1387,430

261717

3,09856,021

531,958

Source: JATMA

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

Rubber (tons)

Tyres ( × 1000)

Rubber (tons)

11

7) Exports by Region of DestinationIn 2005, exports increased from the previous year in units, value and product weight, supported by growing demand of the world for tyres with an increase in the exports to the main markets, U.S. and Europe. Exports on a unit basis to every district except Southeast Asia exceeded the previous year to make the total record high. Exports from Japan to Southeast Asia decreased mainly due to the increase in the locally-based production by Japanese tyre manufacturers.

Figure 11: Changes in export trends by region

100,000

0

200,000

300,000

400,000

1996 1999 2002 20052004200320012000


1997 1998

Others

Southeast Asia

North America

Table 9: Export trends by region Product weight (tons)

Table 10: Export trends by region in 2005

Southeast AsiaMiddle EastEuropeNorth AmericaSouth and Central AmericaAfricaOceaniaTotal

1996147,172170,266186,410260,32457,84253,10466,098

941,216

1997159,337151,996180,883285,79968,27666,92767,861

981,079

1998133,490131,787253,011358,41171,33874,75069,152

1,091,939

1999143,517129,358250,852417,64456,74668,88570,041

1,137,043

2000135,054128,804255,274394,76867,11359,25173,560

1,113,824

2005185,285238,686319,818496,95984,70778,78899,927

1,504,170

2004199,598212,408294,503450,32875,13276,79895,597

1,404,364

2003193,741195,726286,026425,05863,89572,98897,804

1,335,238

2002168,586165,986242,137385,12654,70370,26194,628

1,181,427

2001131,642143,016250,464300,30564,92064,89686,416

1,041,659

Source: Ministry of Finance customs records

Southeast AsiaMiddle EastEuropeNorth AmericaSouth and Central AmericaAfricaOceaniaTotal

(92.8)(112.4)(108.6)(110.4)(112.7)(102.6)(104.5)(107.1)

185,285238,686319,818496,95984,70778,78899,927

1,504,170

12.315.921.333.05.65.26.7

100.0

(97.6)(120.6)(111.7)(114.8)(119.3)(105.2)(109.1)(111.9)

546,351688,061

1,222,5521,604,256

255,035243,941363,509

4,923,705

11.114.024.832.65.24.97.4

100.0

(88.0)(111.2)(108.1)(111.7)(119.5)(103.8)(100.5)(106.9)

8,54911,41620,56726,4843,5592,2533,711

76,539

11.214.926.934.64.72.94.8

100.0


No. of tyres (×1000)Quantity Share

Value (FOB US$1,000)Quantity Share

Product weight (tons)Quantity Share

N.B.: Parentheses show comparisons with previous years (%).

Middle East

Europe

12

8) Imports by Region of OriginThe tyre import statistics for 2005 (see table 11 and table 12), on a unit basis increased 22.3% from the previous year to 29.11 million tyres. By nation of origin, the first was Indonesia with 10.42 million tyres (27.4% increase from the previous year and accounts for 35.8% of the total imports), the second was China with 4.41 million tyres (up 137.8% and accounts for 15.1%) substantially advancing from the fifth in the previous year, the third was Thailand with 4.20 million tyres (up 9.4% and accounts for 14.4%), and the fourth was Taiwan with 2.86 million tyres (up 8.1% and accounts for 9.8%). U.S. backed away from the fourth to the sixth with 2.15 million tyres (down 3.4% and accounts for 7.4%). The imports from local factories in Asia of Japanese tyre manufacturers, such as in Indonesia, Thailand and China, increased not only for the replacement market in Japan but also for the original equipment market. In this connection, the import ratio for passenger car tyres was 20.9%, increasing 3.4 percentage points from the previous year.

Figure 12: Changes in imports of each type of tyre

Table 11: Trends in imports of each category of tyre

Table 12: Trends in imports of tyres by nation (×1000)

0

10

1996 1999 2000 2002 2005200420032001

Millions of tyres

1997 1998

199611,10245,601

7696,0792,2822,846

2951,223

47214,44856,221

12.3105.30

199712,90154,264

9567,6272,6073,403

2831,391

45016,74767,135

13.6118.70

199811,89347,1721,0688,0142,4323,698

1551,203

33215,54860,419

13.1130.90

199910,33436,0511,2708,0712,4553,507

1151,058

22514,17448,912

11.3116.30

200010,54732,6411,2347,4712,9003,703

1521,298

20414,83345,317

11.1107.77

200523,81059,0891,6577,0853,3473,930

2942,863

43929,10873,406

20.9110.16

200213,61840,3051,3015,9442,9393,414

2781,269

48718,13651,419

13.1125.31

200111,32136,0331,2627,4913,1403,794

2641,544

34615,98749,208

11.5121.53


19966,282

543614

1,049720

1,0922,081

278452

21,335

14,448

19976,8791,181

636943832959

2,570632660

71,448

16,747

19985,9281,140

565755799793

2,3621,2251,037

5939

15,548

19994,343

685816

1,101753

1,0612,430

8651,128

11981

14,174

20003,646

559765886823

1,1242,6451,8981,217

651,205

14,833

20052,153

2061,072

543380

2,2932,8554,201

10,4214,408

57629,108

200418,83046,8521,6486,7303,0383,539

2772,177

40023,79359,698

17.5108.18

20042,229

2831,353

578451

1,8242,6423,8418,1821,854

55623,793

200314,17338,5251,8846,1013,1293,588

2991,885

47119,48550,570

14.1115.93

20033,222

305928543597

1,3402,8742,6815,1511,379

46519,485

20024,068

303936549551

1,0892,8242,7963,366

898756

18,136

20013,799

423875513659920

2,8062,7442,228

216804

15,987


15

20

25

30

Total tyres

Passenger car tyres

Commercialvehicle tyres

Motorcycle tyres

Other tyres

Tubes and flaps

Total

Import share of passenger car tyres (%)Exchange rate (¥/US$)

Tyres (×1000)

Value (yen x106)

Tyres (×1000)

Value (yen x106)

Tyres (×1000)

Value (yen x106)

Tyres (×1000)

Value (yen x106)

Value (yen x106)

Tyres (×1000)

Value (yen x106)

N.B.: 1. Exchange rates are averages of spot rates for Tokyo interbank trade. 2. Import shares of passenger car tyres = Imports / Domestic demand of original equipment and replacement tyres + Imports

U.S.A.ItalyGermanyFranceSpainKoreaTaiwanThailandIndonesiaChinaOthersTotal imports

Passenger car tyres

13

III. Measures for Tyre Safety

1. Safety Standards for Automobile TyresVarious standards have been specified regarding tyres from the viewpoint of automobile safety because tyres are automobile’s important parts.

Each individual state has its own legislation specifying the standards and the tyres are requested to satisfy the standards of the state where the tyres are to be used. In Japan we have the safety standards for road trucking vehicles and their detailed items, enacted by the Ministry of National Land and Transportation.

In addition to these national standards, JATMA specifies guideline items for usage and maintenance in “Standards for Selection, Usage and Maintenance” in an effort to enlighten those involved for securing safety.

2. Tyre StandardsIn addition to safety standards, JATMA publishes a definitive set of tyre standards in the annual JATMA Year Book. Setting these standards is the responsibility of the Tyre Standards Committee, mainly comprised of representatives of tyre makers, automakers, and related ministries and agencies in the Japanese government.

The standards cover tyres, rims and valves in seven categories: passenger cars, light trucks, trucks and buses, off-road vehicles, agricultural equipment, industrial vehicles and motor-cycles.

The Japanese Ministry of Land, Infrastructure and Transport has incorporated JATMA’s Tyre Standards in its vehicle inspection procedures since 1982. Internationally, the standards rank as authoritative guidelines together with the ETRTO standards of Europe and TRA standards of the United States. The JATMA standards are also mentioned in the U.S. Department of Transporta-tion’s Federal Motor Vehicle Safety Standards and are mutually recognized standards for tyres exported from Japan to Canada and Australia.

14

3. Legal Limits on Tread WearBalding tyres are a threat to traffic safety, especially on wet roads. The Ministry of Land, Infra-structure and Transport prescribes skidproof requirements in terms of minimum groove depth in its Safety Standards for Road Transportation Vehicles. These requirements, which include wear limits for high-speed and ordinary driving (see table 13,14), proscribe the use of tyres with a groove depth shallower than that specified. Inspection often catch tyres with improper air pres-sures, insufficient grooves or uneven wear (see figure 14).

4. Product InspectionIn 1954, JATMA started its tyre inspection activity at its branch offices.

Damaged tyres are now observed and checked at seven offices according to the requests from their consumers to find causes of the damages and to provide advice to them regarding correct usage of tyres.

Table 13: Wear limit for automobile tyres

Figure 13:Tyre groove depth and braking distance

80km/h

60km/h

40km/h

06 4 2 08

10

20

30

40

50

60

70

80

Tyre size: 165 SR 13Groove pattern: ribAir pressure: 170kPa(1.7kgf/cm2)Weight: 425kgVehicle type: Passenger car, 1,800ccRoad: asphalt; wet

Dis

tanc

e (m

)

Groove depth (mm)

NE

W T

YR

E

Tyre type Groove depth limitPassenger car tyres 1.6 mmUltralight truck tyres 1.6 mmLight truck tyres 1.6 mmTruck and bus tyres 1.6 mmMotorcycle tyres 0.8 mm

Table 14:Wear limit for automobile tyres in high-speeddriving

Tyre type Groove depth limitPassenger car tyres and ultralight truck tyres 1.6 mmLight truck tyres 2.4 mmTruck and bus tyres 3.2 mm

Notes:1. Multiple tyre defects per vehicle are possible, thus the number of tyre defects does not correspond to the number of vehicles with tyre

defects.2. The defect rate is the number of defects divided by the number of vehicles inspected.3. Tyre inspections were carried out a total of 44 times (22 times on expressways and 22 times on ordinary roads) in 2005.4. In the breakdown of tyre defects, the item “improper air pressure” includes insufficient pressure and excessive pressure.

Insufficient tyre grooves

Uneven wear

External cuts (reaching the cord)

Pins or alien matter

Improper air pressure

Others

Figure 14: Breakdown of tyre defects (Parentheses show defect rates)

99 (3.5)

71 (2.5)

11 (0.4)

15 (0.5)

182 (6.5)

56 (2.0)

15

IV. Consideration for Environment

1. Approach to “Reduce”A new concept of “Reduce Index (Re Index)” focused on longer (wear) life and weight saving has been adopted. The industry is making efforts aiming at an effect of 10% (expecting 3-5% of actual reduction).

Category Monitored Size ClassificationRe Achievement Rate

2004 2005 Average

Passenger car tyres 155/65R13Summer tyres – 107 107

Studless tyres 105 110 108

Passenger car tyres 175/65R14Summer tyres – 109 109

Studless tyres – – –

Passenger car tyres 195/65R15Summer tyres 110 112 111


Passenger car tyres 215/45R17Summer tyres 120 135 128


Light truck tyres 145R12Summer tyres 102 128 115


Light truck tyres 185R14Summer tyres 105 110 108


Light truck tyres 205/70R16Summer tyres – 114 114


Light truck tyres 7.50R16Summer tyres – – –


Truck and bus tyres 225/80R17.5Summer tyres – – –

Studless tyres – 126 126

Truck and bus tyres 11R22.5Summer tyres 113 110 112

Studless tyres – 123 123

Table 15: Monitoring of Re Achievement Rates Source: JATMA

N.B.: 1. Re Index = L MRe Achievement Rate = Re Index 100where L=Wear Life Index (life index for the present model based on the previous model assumed as 100)

M=Weight Index (Weight index for the present model based on the previous model assumed as 100)2. Tyres surveyed : Representative sizes selected in advance from replacement tyres for the domestic market.

÷×

16

2. Recycling SituationThe volume of newly scrapped tyres in 2005 decreased, down 21 thousand tons of rubber in total from the previous year, with the increase in “newly scrapped tyres on purchase of new tyres” (up 44 thousand tons) and the substantial decrease in those “on scrapped automobiles” (down 65 thousand tons) caused by the rise in exports of used cars in conjunction with internet transactions. For several years the volume of newly scrapped tyres has remained at the level of one hundred million tyres and one million tons. Concerning collection of scrapped tyres, the trend toward thinking much of the economic principle due to the rise in crude oil prices in recent years caused incomplete supply of scrapped tyres although there were adequate number of users and enough demand. Resultantly, the total recycling rate was 88%, the same level as the previous year. Therefore, taking hold of the routes for collecting scrapped tyres will become an important problem. Regarding the situation of recycling, while Fuel for cement industry continued to decrease from the previous year, Paper manufacturing greatly increased (162% compared with the previous year) due to active operations of biomass boilers at paper mills. On the other hand, Exported statistics on customs clearance basis (Ministry of Finance) indicates an increase in used tyres (up 6% from the previous year) and a decrease in rubber wastes (down 41%), which resulted in a great decline (21%) in total exports. This situation is considered to have arisen because scrapped tyres and rubber wastes for exports were passed on to paper mills and gasification furnaces for large-scale development projects for a wide area, which is in line with our association’s policy aiming for the priority of domestic recycling.

Users

Replacement Scrapped vehicles

Scrap metal companiesTyre retailers

Dea

lers

Service stations

Car dealers

Car repair shops

Automobile parts retailers

Others

Taxi, truck and bus companies

Distributors

Reclaimed rubber, exports, etc.Contractors for collection,transport and processing

Fuel for power generation

Trash collection

Municipalities

Figure 15: Tyre Afterlife

(Mediating recycling work)

17

Figure 16: Recycling of used tyres in 2005Source: JATMA

Miscellaneous: 12% Heat utilization: 52%

Fuel for the cement industry: 18%

Boilers, etc.: 1%

Steel manufacturing: 5%

Paper manufacturing: 21%

Tyre manufacturing: 2%

Metal refining: 1%

Generation electric power: 1%

Exported: 21%

Reuse: 15%

Retreaded tyre bases: 3%

Reclaimed rubber: 10%

Reclamation: 3%

Distributors’ stock: 9%

Other uses: 2%

199678

79823

189101987

199779

81923

189102

1,008

199874

78325

19299

975

199979

79122

181101972

200080

84223

187103

1,029

200584

871(85)16

151(15)100

1,022(100)

200480

82723

216103

1,043

200378

80625

224103

1,030

200183

86024

199107

1,059

200282

83524

205106

1,040

Source: JATMA

19961,896

14,443

19971,700

13,429

19981,430

10,981

19991,2779,941

20001,410

10,534N.B.: Figures include imports of compound rubber.

Source: METI, JATMA

Table 16: Newly scrapped tyres (Tyres: millions; Tons: thousands; ( ): % of total)

Table 18: Changes in production of retreaded tyres (Tyres: thousands; Rubber consumption: ton)

1996

8112029

230276123

–384428

–509163902

––

85987

1997

7912133

233272118

––

4344278

512171916

––

921,008

1998

6511330

208271108

––

3240377

495147850

––

125975

1999

6010632

1982979143

–3440329

546112856

––

116972

2000

5010244

1963617557

–3039427

61195

902––

1271,029

2005

35( 3)103(10)22( 2)

160(15)181(18)12( 1)51( 5)27( 3)10( 1)24( 2)

210(21)9( 1)

524(52)213(21)897(88)32( 3)93( 9)

125(12)1,022(100)

05/04

106868890858098

3389180

162100112799894

1009898

2004

3312025

17821315528

1130

1309

4682709163493

1271,043

2003

369739

1722402348

–2042708

45126889137

102139

1,030

2002

419340

1742846655

–2656866

57914890131

108139

1,040

2001

439840

1813167090

–3055706

63712093817

104121

1,059

Source: JATMATable 17: Recycled tyres (Tons: thousands; % of total)

20051,0378,406

20041,0428,184

20031,1058,699

20021,2039,345

20011,2699,697

On purchase ofnew tyres

On scrappedautomobiles

Total

Tons Tons Tons Tons Tons Tons Tons Tons Tons Tons %

Kin

d o

f rec

yclin

gD

omes

ticR

euse

Hea

t Util

izat

ion

Oth

ers

Number of tyresCompound rubber consumption

Exported (for reuse & retreading) CTotal recycling A + B + C

Retreaded tyre basesReclaimed & powdered rubber

Other usesSubtotal AFuel for cement industryBoilers, etc.Steel manufacturingGasification furnaceMetal refiningTyre manufacturingPaper manufacturingGeneration of electric powerSubtotal B

ReclamationDistributors’ stockSubtotal D

Total used tyres A + B + C + D

TyresTonsTyresTonsTyresTons

05/04105.0105.369.669.997.198.0

Gasification furnace: 3%

18

V. Reference

1. Automobiles and TyresThe number of automobiles registered as of year-end of 2005 (see table 19), was 75.36 million (increased 1.4% from the previous year), and the tyre industry provided 71.18 million tyres (up 2.8% from the previous year), as replacement for those automobiles.Automobile sales in the domestic market in 2005 remained at the same level as the previous year, with an increase in commercial vehicles influenced by the effect of the expansion of the target vehicles of the regulation for NOx and PM(particulate materials) and a decrease in ordinary-sized passenger cars. On the other hand, automobile production (see table 20) reached 10.80 million units (up 2.7% from the previous year) reflecting the increase in the demand for Japanese cars for exports due to the steep rise in the price of crude oil. The sales of original equipment tyres in units decreased to 46.21 million (down 0.7% from the previous year) caused by the increase in tyres imported from locally-based plants in Asia of Japanese tyre manufacturers.

Figure 17: Changes in the tyre and automobile industries

1996 1999 2000

60

40

20

0

Millions of tyres Millions of automobiles

120

80

40

01997 1998 2004 2005200320022001

Replacement tyre demand

Automobile production

Automobile registrations

N.B.: 1. Automobile registration figures exclude large special-use vehicles, carts, motorcycles and three-wheeled vehicles.2. The category “commercial vehicles” includes truck and bus tyres and light truck tyres (including non-JATMA members).3. Excludes tyres for special-use vehicles, motorcycles and transport vehicles

Table 19: Changes in automobile registrations and demand for replacement tyres Source: Ministry of Land, Infrastructure and Transport, JATMA

199646,86821,42768,29547,47822,28469,762

199748,61121,07869,68947,78522,24070,025

199849,89620,60070,49646,03020,50266,532

199951,16420,23771,40147,40720,91168,318

200052,43719,88972,32649,36121,48570,846

200557,09118,27075,36151,29919,88371,182

200455,99418,33774,33149,48619,76969,255

200355,21318,67773,89049,03718,59467,631

200254,54019,12573,66552,42720,22772,654

20059,0171,783

10,80038,6337,577

46,210

20048,7201,791

10,51138,9867,572

46,558

20038,4781,808

10,28637,5467,769

45,315

20028,6181,639

10,25737,9546,842

44,796

200153,54019,54473,08451,64821,34072,988

Auto

mob

ilere

gistr

ation

s(×

1000

)

Repla

ceme

ntty

res

(×10

00)

Passenger carsTrucks & BusesTotalPassenger carsCommercial vehiclesTotal

N.B.: 1. Automobile production figures exclude motorcycles.2. The category “commercial vehicles” includes truck and bus tyres and light truck tyres (including non-JATMA members).3. Excludes tyres for special-use vehicles, motorcycles and transport vehicles4. Excludes imports

Table 20: Changes in automobile production and original equipment tyre sales Source: Japan Automobile Manufacturers Association, JATMA

19967,8652,482

10,34731,56710,20241,769

19978,4912,484

10,97534,00110,19744,198

19988,0481,994

10,04232,9978,288

41,285

19998,0971,7959,892

33,8027,581

41,383

20008,3591,782

10,14135,0887,566

42,654

20018,1181,6609,778

35,3807,275

42,655

Auto

mob

ilepr

oduc

tion

(×10

00)

Orig

inal

equi

pmen

tty

re s

ales

(×10

00)

Passenger carsTrucks & BusesTotalPassenger carsCommercial vehiclesTotal

Original equipment tyre sales

19

The distribution of automobile tyres is divided into three channels: original equipment, replace-ment and exports. Distribution channels for replacement tyres are particularly wide-ranging with distributors as key stations.

The chief distribution channels are roughly divided into two types: direct sales and indirect sales. Direct sales are those under which distributors sell tyres directly to some large users, such as transport, bus and taxi companies, and government and municipal users. Indirect sales are those under which dealers supply tyres to endusers.

Some 300 distributors and about 160 thousand dealers supply replacement tyres. On the basis of rubber consumption in 2005, sales of tyres for new automobiles accounted for 17.3% of the total, 29.6% for replacement tyres and 53.1% for exports. The ratio of exports further in-creased.

2. Distribution Channels

Figure 19: Distribution channels

Tyre manufacturers

Original equipment

Replacement Distributors(Stores)

Export

Tyre specialty stores

Car dealers

Service stations

Car repair works

Automobile parts retailers

Others

Dea

lers

Importers/Distributors

State trading companies

Special customers

OEMs

Cars for domestic use

Cars for exportAut

omob

ilem

anuf

actu

rers

Large users

Business users

Private users

Tyre dealers

Gas stations

Car & related shops

Miscellaneous

Large fleets & buses

Taxicabs

Construction &mining companies

Endusers

Tradingcompanies

Direct

Figure 18: Changes in sales share of automobile tyres (New rubber consumption)

0 1996 1997 1998 1999 2000 20052004200320022001

20

40

60

80

Production share: %

18.0

34.7

47.3

31.0

18.2

50.8

30.5

17.9

51.6

29.6

17.3

53.1

Originalequipment

Replacement

Export

19.7

38.7

41.6

20.2

37.4

42.4

18.3

34.8

46.9

17.6

34.8

47.6

18.0

35.8

46.2

18.0

37.1

44.9

20

More than 100 raw materials are used in the production of automobile tyres, including raw rub-ber, tyre cord, carbon black, bead wire and compounding ingredients. (See figure 20)

Approximately 60% of these materials are based on petroleum products, principally naph-tha. As a result, the tyre industry is highly dependent on petroleum.

The relative consumption of raw materials has changed, reflecting the diversification of products, as shown in table 22. Looking at the figures for 2005, the difference between natural rubber and synthetic rubber in their consumption became larger due to the increase in truck and bus tyres and a sharp rise in the price of crude oil. And steel cord consumption was on an upward trend in the structural proportions of tyre cords due to growing in size of tyres.

3. Raw Materials

Table 21: Basic composition of compounding

Basic composition

Rubber

Compoundingingredients

Reinforcing agent

Tyre cord

Examples

Natural rubber,Synthetic rubber

Vulcanizing agent

Vulcanizing accelerator

Vulcanizing accelerator aid

Antioxidant

Filler

Softener

Carbon black, Silica

Steel cord, Textile cord

Table 22: Trends in consumption of the main raw materials used in automobile tyres (tons)

1996

199,102

35,191

38,875

918

1,062

275,148

590,945

468,019

1,058,964

560,318

1997

201,747

34,893

39,275

1,119

563

277,597

588,111

494,041

1,082,152

575,904

1998

210,296

27,842

40,081

1,098

528

279,845

593,418

488,006

1,081,424

566,309

1999

218,120

25,243

40,884

1,107

521

285,875

621,088

522,575

1,143,663

590,323

2000

222,688

25,099

43,835

1,009

544

293,175

633,993

512,285

1,146,278

596,156N.B.: JATMA members

Source: JATMA

2005

262,247

24,320

51,652

3,589

830

342,638

741,042

548,864

1,289,906

662,714

2004

253,003

24,593

50,514

2,764

688

331,562

699,279

539,746

1,239,025

635,246

2003

240,857

24,499

48,750

2,826

530

317,462

685,963

537,024

1,222,987

632,068

2002

225,882

24,710

46,155

1,950

614

299,311

654,723

525,331

1,180,054

609,247

2001

216,424

24,139

44,291

1,458

590

286,902

619,316

496,146

1,115,462

579,721

Tyre

cor

ds

Steel

Nylon

Polyester

Rayon

Others

Total

Natural rubber

Synthetic rubber

TotalRub

ber

Reinforcing agent

Figure 20: Tyre raw material weight composition

Rubber: 50.3%

Compounding ingredients: 5.9%

Natural rubber: 28.9%

Synthetic rubber: 21.4%

Bead wire: 4.7%

Reinforcing agent: 25.8%

Tyre cord: 13.3%

Steel cord: 10.2%

Textile cord: 3.1%

2005figures(100%)

21

Others:29.5%

North America: 16.2%

South and CentralAmerica: 8.3%

Europe: 13.2%

Europe: 22.5%Asia / Oceania:

31.1%

Africa: 1.7% Africa: 1.6%

South and CentralAmerica: 5.6%Africa: 1.5% South and Central

America: 6.3%

Others:15.0%


Europe: 26.1%

Asia / Oceania: 28.6%

Others:19.1%


Asia / Oceania: 29.3%

Global production of automobile tyres in 2004 (see table 23), the most recent year for which statistics are available, increased 4.0% from the previous year, to 1,273 million units. By vehicle category, production of tyres for passenger cars increased 3.9% from the previous year, to 911 million units, while that for commercial vehicles increased 4.4%, to 362 million units.

Looking at each country (see table 24), in the United States, the world’s largest tyre-pro-ducing nation, production decreased 1.3% from the previous year, to 233 million units, equal to 18.3% of the total. In Japan, the second largest tyre producer, the production increased 1.6% from the previous year, to 173 million units, accounting for 13.6% of the total. The other major tyre-producing nations, in order of volume manufactured, were Germany, the Republic of Korea, France, and Italy. The United States and Japan together accounted for 31.9% of global tyre production, decreasing 1.3 percentage points from the previous year, and the figures indicate a trend of decline these years.

4. Tyre Production Worldwide

Figure 21: Share of world tyre production by geographic region in 2004

2000 2001 2002 2003 2004 2004Share (%)

Table 23: World tyre production by geographic area (units × 106)

NorthAmerica

South andCentralAmerica

Europe

Africa

Asia/Oceania

Others

Total

Passenger car tyresCommercial vehicle tyresTotalPassenger car tyresCommercial vehicle tyresTotalPassenger car tyresCommercial vehicle tyresTotalPassenger car tyresCommercial vehicle tyresTotalPassenger car tyresCommercial vehicle tyresTotalPassenger car tyresCommercial vehicle tyresTotalPassenger car tyresCommercial vehicle tyresTotal

23.216.221.25.68.36.3

26.113.222.51.51.71.6

28.631.129.315.029.519.1

100.0100.0100.0

21159

270513081

23848

286146

20261112373137107244911362

1,273

21657

273462875

23445

279136

2025911237110897

206877347

1,224

22458

282442771

23444

277136

192371073449093

183843334

1,177

23750

288422668

22743

270126

182261063317888

166822319

1,141

25757

315442671

23145

276126

182271073346587

152837328

1,165N.B.: 1. “Commercial vehicle tyres” includes truck, bus and light truck tyres.

2. “Others” includes the People’s Republic of China, as well as several former Communist regions, including the Commonwealth of Independent States and some countries in Eastern Europe.

3. Including some estimates.4. Totals were calculated in thousands and indicated in millions.

2002 2003 2004 2004 04/03Share (%)

Table 24: Tyre production by leading manufacturing countries (units × 106)

U.S.A.

Italy

France

Germany

Korea

Japan

Passenger car tyres

Commercial vehicle tyres

Total

Passenger car tyres


Total

Passenger car tyres


Total

Passenger car tyres


Total

Passenger car tyres


Total

Passenger car tyres


Total

18549

233303

33558

63671278621577

13241

173

18848

236293

32557

62621173551671

13040

170

19848

246293

31547

61601070541669

12741

168

20.313.418.33.30.82.66.12.25.07.33.26.26.84.26.0

14.511.213.6

98.0101.398.7

104.5105.4104.5101.0112.9102.3108.2106.7108.0111.496.1

108.0101.5102.0101.6

N.B.: 1. “Commercial vehicle tyres” includes truck, bus and light truck tyres.2. Totals were calculated in thousands and indicated in millions.

Year-on-year comparisons were calculated in thousands.

Source: JATMASource: JATMA

Passenger car tyres Commercial vehicle Total

22

Chairman:Vice-Chairman:Executive Director:Established:Head Office:

Members:

OrganizationUnder General Assembly and Board of Directors, four committees are established; Executive, Technical, Export, and 3R Promotion. The committees have relevant subcommittees which promot-ing their activities such as surveys and studies.

Tadanobu Nagumo, President, The Yokohama Rubber Co., Ltd.Tetsuji Mino, President, Sumitomo Rubber Industries, Ltd.Ichiro Shimizu September 1947 (incorporated in December 1968)Toranomon No. 33 Mori Bldg., 8F, 8-21, Toranomon 3-chome, Minato-ku, Tokyo 105-0001, JapanTel.: 03 (3435) 9091 Fax: 03 (3435) 9097Bridgestone CorporationSumitomo Rubber Industries, Ltd.The Yokohama Rubber Co., Ltd.Toyo Tire & Rubber Co., Ltd.Nihon Michelin Tire Co., Ltd.

The Japan Automobile Tyre Manufacturers Association, Inc.

Executive Committee

Technical Committee

Export Committee

3R Promotion Committee

Replace Market Subcommittee

Research & Statistics Subcommittee

Public Relations Subcommittee

Logistics & Packaging Subcommittee

Intellectual Property Subcommittee

Design Subcommittee

Tyre Standards Verification Subcommittee

Tyre Road Noise andPerformance Testing Subcommittee

Material Technical Subcommittee

Environment Subcommittee

Tyre Inspection &Technical Service Subcommittee

Tyre Standards Committee

Export Affairs Subcommittee

3R- Subcommittee 1

3R- Subcommittee 2

3R- Subcommittee 3

3R- Pavement Subcommittee

3R- Powdered Rubber Subcommittee

GeneralAssembly

Board ofDirectors

Board ofInspectors

23

JATMA Member Firms

PresidentEstablished:Capital:

Annual sales:

Employees:

Head office:

Shoshi ArakawaMarch 1, 1931¥126,354 million(as of the end of December 2005)¥855,023 million(fiscal year ended December 2005)13,027(as of the end of December 2005)10-1, Kyobashi 1-chome,Chuo-ku, Tokyo 104-8340Tel.: 03 (3567) 0111http://www.bridgestone.co.jp/

Bridgestone Corporation


Annual sales:

Employees:

Head office:

Yoshio KataokaAugust 1, 1945¥23,974 million(as of the end of March 2006)¥236,910 million(fiscal year ended March 2006)3,147(as of the end of March 2006)17-18, Edobori 1-chome,Nishi-ku, Osaka,Osaka Prefecture 550-8661Tel.: 06 (6441) 8801http://www.toyo-rubber.co.jp/

Toyo Tire & Rubber Co., Ltd.


Annual sales:

Employees:

Head office:

Tadanobu NagumoOctober 13, 1917¥38,909 million(as of the end of March 2006)¥288,144 million(fiscal year ended March 2006)5,118(as of the end of March 2006)36-11, Shimbashi 5-chome,Minato-ku, Tokyo 105-8685Tel.: 03 (5400) 4531http://www.yrc.co.jp/

The Yokohama Rubber Co., Ltd.


Employees:

Head office:

François BussonJune 10, 1975¥100 million(as of the end of December 2005)1,361(as of the end of December 2005)6-1, Fujimi 1-chome,Chiyoda-ku, Tokyo 102-8176Tel.: 03 (5210) 2700http://www.michelin.co.jp/

Nihon Michelin Tire Co., Ltd.


Annual sales:

Employees:

Head office:

Tetsuji MinoMarch 6, 1917¥42,658 million(as of the end of December 2005)¥230,168 million(fiscal year ended December 2005)5,224(as of the end of December 2005)6-9, Wakinohama-cho 3-chome,Chuo-ku, Kobe,Hyogo Prefecture 651-0072Tel.: 078 (265) 3000http://www.srigroup.co.jp/

Sumitomo Rubber Industries, Ltd.

Jul. 2006

Distribution of member companies’ automobile tyre plants(Apr. 2006)

Shinshiro Plant (Yokohama)

Shinshirominami Plant (Yokohama)

Nagoya Plant (Sumitomo)

Mie Plant (Yokohama)

Kuwana Plant (Toyo)

Hikone Plant (Bridgestone)

Izumiohtsu Plant (Sumitomo)

Onomichi Plant (Yokohama)

Hofu Plant (Bridgestone)

Shimonoseki Plant (Bridgestone)

Amagi Plant (Bridgestone)

Kurume Plant (Bridgestone)

Tosu Plant (Bridgestone)

Miyazaki Plant (Sumitomo)

Sendai Plant (Toyo)

Shirakawa Plant (Sumitomo)

Nasu Plant (Bridgestone)

Tochigi Plant (Bridgestone)

Ohta Plant (Nihon Michelin)

Tokyo Plant (Bridgestone)

Mishima Plant (Yokohama)

The Japan Automobile Tyre Manufacturers Association, Inc.http: / /www.jatma.or. jp

Head Office No.33 Mori Bldg. 8Floor3-8-21 Toranomon, Minato-ku, Tokyo, JAPAN 105-0001

General Affairs Department (General Affairs, Accounting) Phone. 03-3435-9091 Fax. 03-3435-9097(Public Relations) Phone. 03-3435-9092 Fax. 03-3435-9097

Technical Department Phone. 03-3435-9094 Fax. 03-3435-9097(Inspection • Accident Prevention) Phone. 03-3435-9092 Fax. 03-3435-9097

Business Affairs Department Phone. 03-3435-9095 Fax. 03-3435-9097Recycling Division Phone. 03-5408-5051 Fax. 03-5408-5053

2-13 Higashi, Ohdori, Chuo-ku, Sapporo, Hokkaido, JAPAN 060-0041 1-7-8 Ichiban-cho, Aoba-ku, Sendai, Miyagi, JAPAN 980-08111-9-6 Higashiueno, Taito-ku, Tokyo, JAPAN 110-001528-15 Takebashi-cho, Nakamura-ku, Nagoya, Aichi, JAPAN 453-0016 1-9-20 Dohshin, Kita-ku, Osaka, Osaka, JAPAN 530-00358-18 Fukuro-machi, Naka-ku, Hiroshima, Hiroshima, JAPAN 730-00362-20-4 Higashihie, Hakata-Ku, Fukuoka, Fukuoka, JAPAN 812-0007

Hokkaido BranchTohoku BranchKanto BranchChubu BranchKinki BranchChugoku BranchKyushu Branch

BranchesPhone. 011-281-3671 Fax. 011-241-4889Phone. 022-227-8118 Fax. 022-222-6979Phone. 03-3832-8661 Fax. 03-3832-8663Phone. 052-452-3907 Fax. 052-452-3908Phone. 06-6351-6747 Fax. 06-6351-2519Phone. 082-247-1524 Fax. 082-247-9541Phone. 092-411-3536 Fax. 092-411-7781

h t t p : / / w w w . j a t m a . o r . j p

THE JAPAN AUTOMOBILE TYRE MANUFACTURERS ASSOCIATION,INC.

2006

TYREINDUSTRYOF JAPAN

2006 JATMA - Japan Tire Industry 2006

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