The current status of the tire industry which includes 2/3 wheeler tire(includes Motorcycle, Rickshaws) has multiple market players whereas the 4 wheeler tyres( includes PCR, tractors, trucks & buses) has no competition, yet, which identifies a plausible opening in the present Pakistani market. Demand for all kinds tires is being anticipated to have a rising trend due to the increase in automotive industry, CPEC and agriculture industry. The Pakistani tire market is categorized into OEM, Replacement. OEM is the tire which come equipped when you buy and new vehicle. Replacement Most of the local tire manufacturing units produce two wheel or Rickshaw tires are located near the sources of raw materials. The PCR, trucks and buses tires are produced by General tyres, only. No other market shareholder has the capacity of specified production. The 2/3 wheeler industry is dominated by Servis and Panther tire Industries due to higher production capacity and well- developed distribution network in comparison to other small and medium units. Pakistan also exports all kinds of tires products to the Afghanistan, Egypt. As of FY 16 the total units Produced and total revenue stood at 8.1 m units and $ 919 million USD respectively. In terms of Volume Passenger car radial (PCR) tire account for 38% of total production but only contributes 16% of the industry revenues. In contras truck and buses tire segment contributes 22% to the total tire production, but has the highest revenue share at 56%.More over Light truck segment @ 13% in terms of revenue accounts for 28% of tire production in Pakistan.
Pakistan tire import has increased at a steady rate of 15% from FY 14-16 and stood at USD $326 million. China, India and Thailand imports of tires continues to pose a threat to the Pakistan tire industry across all tire categories. During FY 14-16 the imports have grown by 12.3%, 28.3%, and 37.8% respectively China, India and Thailand. More over the overall imports from China and Thailand has shown a rising trend, whereas imports from India has down surged by 15% during the same period.
Pakistan tire export has increased at a steady rate of 12% from FY 14-16 and stood at USD $8.5 million. It was witnessed that Afghanistan and Egypt imports around 63% and 11% of Pakistan total tire exports in FY 16. Moreover during the same period over all export of Pakistan to Afghanistan and Egypt has shown a decreased trend and down surged by 21% and 25% respectively whereas rubber tire exports have shown a surge of 16% and 63% during the same period.