Report Date: July 18, 2026
Mongolia's tire market is almost entirely import-dependent (~99%). China remains the No.1 supplier. In 2024, total imports reached approximately 1.35 million units, with mining OTR tires accounting for a significantly higher share than the global average. High natural rubber prices and the depreciation of the MNT are putting continuous pressure on import costs. Smooth trade through China-Mongolia border crossings ensures supply chain stability, presenting clear opportunities for localized retreading and mining tire direct sales.
Source: National Statistics Office of Mongolia; General Administration of Customs of China; Dec 2024 / Mar 2025 data
Mongolia has no large-scale tire manufacturing plants, making supply entirely dependent on imports. Demand is centered in Ulaanbaatar, covering a nationwide car parc of approximately 910,000 vehicles. The mining sector (Oyu Tolgoi copper mine, Tavan Tolgoi coal mine, etc.) has a strong demand for large OTR tires, consuming about 25,000-30,000 units annually. PCR tires account for the highest consumption volume, but OTR tires stand out in value share.
| Metric | 2023 | 2024 | YoY Change |
|---|---|---|---|
| Domestic Production | ~0 | ~0 | — |
| Total Imports (10K units) | ~128 | ~135 | ↑5.5% |
| Vehicle Parc (10K units) | ~87 | ~91 | ↑4.6% |
| Mining Tire Demand (10K units) | ~2.4 | ~2.6 | ↑8.3% |
Source: National Statistics Office of Mongolia; World Bank; Dec 2024 / Mar 2025 data
As the world's largest tire producer, China produced approximately 950 million rubber tire units in 2024. PCR tire operating rates remain in the 75%-80% range, while TBR tire rates stay around 62%-68%. Shandong province (accounting for ~55% of national output) is active in exporting to Mongolia, with the Erenhot border crossing acting as the primary route for Chinese tires entering Mongolia. High natural rubber prices are driving up production costs.
Source: National Bureau of Statistics of China; Longzhong Info; Sunsirs; Jan-Mar 2025 data
Retail prices for tires in Mongolia are 35%-55% higher than in Chinese producing regions, primarily due to transportation costs, import tariffs, and distribution layers. Ulaanbaatar concentrates about 70% of the country's tire dealers and retail outlets. Winter tires (snow tires) are an essential demand, accounting for around 40% of annual PCR consumption. Mining tires are mostly procured through direct sales agreements, leading to relatively smaller price fluctuations.
Source: National Statistics Office of Mongolia; Ulaanbaatar Chamber of Commerce; Industry Estimates; Dec 2024
Mongolia's tire imports are dominated by PCR tires, but OTR mining tires hold a prominent value share. TBR tires are benefiting from steady growth in mineral transportation and cross-border logistics demand. The winter tire segment typically sees an import peak from September to November.
| Segment Category | Import Share (Vol.) | Value Share | Trend |
|---|---|---|---|
| PCR | ~52% | ~38% | Stable Growth |
| TBR | ~27% | ~32% | ↑Demand Rising |
| OTR | ~18% | ~26% | ↑Strong Growth |
| Agricultural & Others | ~3% | ~4% | Flat |
Source: Mongolia Customs; China Customs HS Code 4011 Statistics; Full Year 2024 Data
Mining OTR tires are the most strategically valuable segment in the Mongolian market. The Oyu Tolgoi copper mine alone consumes over 8,000 large OTR tires annually, with single tire prices reaching USD 15,000 to 40,000. Supply is dominated by Michelin, Bridgestone, Goodyear, and Chinese brands (such as Triangle and Linglong). Chinese brands are rapidly gaining market share in the mid-range OTR segment through competitive pricing.
Source: Industry Research Data; Oyu Tolgoi Annual Report; 2024
Natural rubber (SCRWF) prices in China fluctuate between 14,000 and 17,000 CNY/ton, while synthetic rubber (SBR) ranges from 11,000 to 14,000 CNY/ton, and carbon black (N330) is around 7,500 to 9,000 CNY/ton. CIF prices for imported tires in Mongolia are significantly affected by raw material cost transmission. Combined with overland transport fees (approximately 8%-12% of total cost), end-market price sensitivity remains high.
| Raw Material | China Price Range | Trend |
|---|---|---|
| Natural Rubber SCRWF | 14,000 - 17,000 CNY/Ton | High Volatility |
| Synthetic Rubber SBR | 11,000 - 14,000 CNY/Ton | Follows NR Trend |
| Carbon Black N330 | 7,500 - 9,000 CNY/Ton | Relatively Stable |
Source: Sunsirs; Longzhong Info; March 2025 Data; Mongolia CIF estimated using prevailing values
Mongolia's GDP is approximately USD 21 billion (2024), with mining accounting for about 25%. The MNT/USD exchange rate continues to weaken (approx. 3,450:1), driving up the cost of imported goods. China is Mongolia's largest trading partner, with the Erenhot border crossing handling roughly 70% of China-Mongolia overland freight. Tire import tariff rates are around 5%, with no special non-tariff barriers.
| Macro Indicator | Value | Period |
|---|---|---|
| GDP | ~USD 21 Bn | 2024 |
| GDP Growth | ~5.2% | 2024 |
| MNT Exchange Rate | ≈3,450 MNT/USD | Mar 2025 |
| Tire Import Tariff | ~5% | Current |
| Annual Inflation | ~8.5% | 2024 |
Source: World Bank; National Statistics Office of Mongolia; Mongolia Customs; 2024 - Mar 2025 Data
Geopolitically, China-Mongolia relations remain stable, with customs clearance efficiency at Erenhot continuing to improve. Currency risk (MNT depreciation) is the primary financial challenge for importers. Opportunities include: localizing mining tire retreading can reduce costs by 30%-40%; there is ample room for Chinese mid-to-high-end OTR tires to replace international brands; Mongolia's mining expansion cycle brings sustained incremental demand.
Source: World Bank; Ministry of Mining of Mongolia; Industry Research; 2024-2025 Data