Guizhou Tyre recorded total revenue of 10.69 billion yuan in 2024 (approx. £1.1 billion), marking an 11.35% year-on-year increase. Growth was supported by strong demand for its Advance brand, particularly in European markets.
Despite the revenue growth, net profit fell over 26% year-on-year to 615.49 million yuan, down from 832.65 million yuan in 2023. Basic earnings per share dropped to 0.44 yuan, while diluted EPS slipped to 0.40 yuan.
Cash flow also came under pressure, falling by more than 63% to 56.14 million yuan. The decline signals increased operational costs, likely tied to international expansion and delayed return on investment from new production facilities.
A key factor in the company’s cost increases is its expanded investment in Vietnam. In December 2024, Guizhou Tyre launched Phase 3 of its $230 million plant in Tien Giang. Once completed in 2025, it will produce six million passenger car radial (PCR) tyres annually.
The facility incorporates automation and sustainability measures, supporting Guizhou Tyre’s strategy to enter the European PCR tyre market by 2026.
More than 30% of the company’s 2024 sales were international, underlining the growing importance of its export markets. The focus on sustainable, high-performance tyres aims to meet tightening European standards, particularly in the replacement segment.
Guizhou Tyre’s pivot toward advanced PCR tyre production signals a shift in its long-term strategy, moving from volume-led growth to value-driven exports. By investing in smart manufacturing and low-carbon processes, the company is aligning with global trends in EV-ready and regulation-compliant tyres. For the broader industry, this reflects the growing influence of Southeast Asia as a production hub for Europe-facing tyre brands.
Tagged with: Guizhou Tyre, PCR tyres, Vietnam tyre plant, 2024 financial results, sustainable tyre production, European tyre market, tyre exports, Advance brand, Chinese tyre makers
Disclaimer: This content may include forward-looking statements. Views expressed are not verified or endorsed by Tyre News Media.
Sign up for our weekly briefing on key developments across the sector.
