The capacity surge will make North America a more competitive environment.
"The existing Tier 1 players are definitely going to be experiencing the pressures of increased competition, and that will be true at the original equipment and in the replacement tire market," Harrison said. "Competition comes in various forms. It might be in the form of bidding on fitments or supplying a retailer or in the form of pricing."
But stiffer competition is unlikely to upend the industry's giant players, Lifschutz said. The market's big four players — Michelin, Bridgestone, Goodyear and Cooper Tire — represented more than 60 percent of total industry revenue in 2018.
"Those players continue to maintain a competitive advantage due to strong brand recognition, favorable reputation and high level of advertising expenditure," Lifschutz said.
But some new entrants have capitalized on new plants to boost their market penetration here.
Giti Tire, headquartered in Singapore, opened its first U.S. manufacturing plant in 2017 in Richburg, S.C., a $560 million investment. Although Giti was a key player in China, with more than 200 original equipment fitments there, it had no business supplying automakers in North America. Since the South Carolina plant opened, it has won contracts supplying the 2019 Volkswagen Passat midsize sedan and the 2018 Volkswagen Tiguan compact crossover.
Jim Mayfield, Giti Tire USA's head of sales and marketing, says once a tire supplier wins an original equipment fitment, more success follows.
"It brings credibility to the brand, and also visibility, as consumers start seeing it on vehicles," Mayfield said.