July tire production in China rose 12.5 percent year-on-year to nearly 73 million units, Dow Jones reported, citing China's National Bureau of Statistics.

In the first seven months of 2011, tire production rose 5 percent to 461 million units.

According to IHS Automotive's Supplier Business newsletter, Japanese tire makers are expanding production in China.

Toyo Tire & Rubber Co. purchased a 75 percent stake in China's Shandong Luhe Rubber and Tire for $51 million. And Yokohama Rubber (China) Co. has bought out its joint-venture partner, YHI International Ltd.

Bridgestone Corp. and Sumitomo Rubber Industries Ltd., Japan's two largest tire makers, also are expanding in China.

Demand for replacement tires is growing in China as car ownership expands. Tire prices also have risen, due to the high cost of rubber.

Source:china4auto