Business / Auto China

Michelin accelerates for network expansion

By Li Fangfang (China Daily) Updated: 2014-05-26 07:13

A TyrePlus technician testing his skills in a technique competition. [Photos provided to China Daily]

TyrePlus aims to provide aftermarket with quality, quantity and convenience

French tire maker Michelin is putting all its efforts into establishing itself in China's automotive aftermarket by expanding its TyrePlus service network.

After opening four maintenance centers in Shandong, Jiangsu and Hubei provinces the number of TyrePlus stores in China stands at more than 1,000, making it the nation's largest auto service network.

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"It's a milestone for Michelin, further indicating our commitment to Chinese consumers," said Philippe Videau, Michelin China's tire replacement market sales director.

"We are here not only to provide high-quality products, but also to put efforts into expanding the service network to benefit more local consumers."

Michelin started its TyrePlus automotive maintenance workshop chain in Australia in 2002 and introduced the brand to China in 2003 with the first store in Shanghai.

The company transferred its business model for TyrePlus in China to a franchise in 2009 to provide integrated services including express repairs. Michelin then aggressively expanded the network by adding 100 to 200 new stores per year from 2010 to 2013.

After 11 years in China TyrePlus has a presence in more than 230 cities in the country and services more than 5 million vehicles a year.

Total sales revenue of TyrePlus jumped from 2012's 3 billion yuan ($480 million) to 4 billion yuan in 2013, an increase of 30 percent.

According to Videau, Michelin will accelerate the expansion of the TyrePlus network to 1,500 shops in the next three years and 2,000 in the next five years.

He said TyrePlus shops in the third and fourth-tier cities account for 50 percent of the whole network but Michelin plans to raise this figure, while strengthening and optimizing the network in larger cities, to provide proximity to all Chinese consumers.