Pakistan Tyre (Tire) Market Bolstered by Improving Infrastructural Projects

Tyres represent one of the vital components in automobiles as they assist in transferring the load of the vehicle from the axle to the ground. They are made using materials such as natural and synthetic rubber, carbon black, fabric and wire, along with other chemical compounds. Most of the tyres are pneumatically inflated, owing to which they offer a flexible cushion that absorbs shock when the vehicle travels on a rough surface. At present, the rising vehicle motorization rate in Pakistan is spurring the demand for tyres in the country. As per the Pakistan tyre market report by IMARC Group, the market reached a consumption volume of 20.9 Million Units in 2018, expanding at a CAGR of nearly 6.4% during 2011-2018.

The Pakistan tyre market is presently experiencing moderate growth owing to the increasing vehicle ownership in the country. Apart from this, the Government of Pakistan is focusing on infrastructural and macroeconomic reforms which are impelling the growth of the automotive industry in the country. The government is also increasing taxes on imports to encourage and strengthen domestic manufacturers. Further, owing to a consistent rise in the demand for tyres, local and foreign investors have started showing more interest in the industry, which is anticipated to influence the market growth in the upcoming years. Owing to these factors, the Pakistan tyre market size is expected to reach 28.5 Million Units by 2024.

Market Segmentation: Based on Vehicle Type, OEM and Replacement Segment, Domestic Production and Imports, Legitimate and Grey Market, Radial and Bias Tyres, and Tube and Tubeless Tyres

• On the basis of the vehicle type, the market has been segmented into two-wheeler and three-wheeler; passenger cars and light truck; and heavy commercial and off-the-road (OTR). At present, two-wheelers and three-wheelers represent the leading vehicle type in Pakistan.
• Based on the original equipment manufacturer (OEM) and replacement segment, replacement tyres exhibit a clear dominance in the market.
• On the basis of domestic production and imports, domestic production presently holds a higher share in the industry. Several new players from the automobile industry are setting up tyre manufacturing plants in Pakistan, which is increasing the domestic production of tyres.
• On the basis of legitimate and grey markets, the legitimate segment accounts for a higher share.
• Based on radial and bias tyres, radial tyres hold the largest market share.
• On the basis of the tube and tubeless tyres, tubeless tyres dominate the market.

Punjab Represents the Leading Market

Punjab currently represents one of the leading markets for tyre in Pakistan, owing to rapid urbanization, high population and the increasing demand for automotive vehicles in the state. Other major markets in the country include Sindh, Khyber Pakhtunkhwa and Balochistan.

The competitive landscape of the market has also been analyzed in the report. Some of the key players operating in the industry are General Tyre and Rubber Co. Ltd., Panther Tyres Limited, Diamond Tyres Limited, Service Industries Limited and Ghauri Tyre and Tube Pvt. Limited.

Other Reports by IMARC Group:

Saudi Arabia Luxury Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024

About IMARC Group: IMARC Group is a leading market research and consulting company that offers management strategy and market research worldwide. The company has done multiple projects on the Pakistan tyre industry, which has enabled clients to set up and expand their businesses successfully. Some of the company’s offerings include:

• Market Research
• Plant setup
• Plant Expansion
• Marketing and sales
• Procurement and Distribution
• Innovation and Product Development

Imarc Group is a leading market research and consulting company that offers management strategy and market research worldwide.