Pakistan Tyre Market

Market Overview:

The Pakistan tyre market size reached 24.0 Million Units in 2023. Looking forward, IMARC Group expects the market to reach 35.4 Million Units by 2032, exhibiting a growth rate (CAGR) of 4.3% during 2024-2032.

Pakistan Tyre Market Analysis:

• Market Growth and Size: Witnessing a notable rise from 24.0 million units in 2023 to a projected 35.4 million units by 2032, the Pakistan tyre market is flourishing, showcasing a robust annual growth rate of 4.3%. This expansion is a result of the burgeoning automotive sector, reflecting the increasing reliance on personal and commercial vehicles across the country.
• Major Market Drivers: The rise in vehicle ownership, fueled by the nation's infrastructural and economic strides, stands as a cornerstone propelling the tyre market forward. Complemented by governmental strategies such as import taxes to encourage local manufacturing, these elements collectively catalyze the market growth in the country.
• Technological Advancements: Advancements in tyre technology, though not explicitly detailed, are inferred from the market's growth, suggesting innovations in durability, material efficiency, and performance. These enhancements are pivotal in meeting the evolving demands of Pakistan’s diverse transportation landscape.
• Industry Applications: Integral to a spectrum of vehicles, from two-wheelers to robust commercial trucks, tyres function as the most essential components ensuring safety and efficiency on Pakistan's roads. The market's segmentation reveals the expansive reach of tyres, catering to every corner of the nation's transport needs.
• Key Market Trends: Dominated by a preference for replacement tyres and a noticeable shift towards domestic manufacturing, the market trends reflect a proactive adaptation to post-purchase demands and a commitment to self-reliance in production. These patterns represent a strategic response to both consumer preferences and national economic priorities.
• Geographical Trends: Diverse economic conditions and infrastructural developments across Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan paint a complex picture of the market's geographical nuances. These regional disparities offer a kaleidoscope of challenges and opportunities, shaping the market's overall dynamics.
• Competitive Landscape: The arena is vibrant with established players and emerging contenders, each striving to grow and expand their shares on the industry. This competitive fervor drives development of current product variants and also ensures a relentless pursuit of innovation, keeping the market dynamic and forward-thinking.
• Challenges and Opportunities: Navigating through the challenges posed by the grey market and continuously changing international standards, the industry stands at a crossroads of significant transformation. The escalating tyre demand is creating lucrative market opportunities, promising a positive outlook for the market.
   

Tyres refer to one of the essential components in automobiles that aid in transferring the load of the vehicle from the axle to the ground. They are manufactured using materials such as fabric, wire, carbon black, natural and synthetic rubber, and other chemical compounds. As tyres are pneumatically inflated, they provide a flexible cushion for absorbing shock when the vehicle travels on a rough surface. Presently, the rising vehicle motorization rate in Pakistan is impelling the demand for tyres in the country.

The market in Pakistan is primarily driven by the increasing vehicle ownership in the country. This can be attributed to numerous infrastructural and macroeconomic reforms undertaken by the Government of Pakistan. In line with this, continual growth in numerous end-use applications, such as industrial, construction and agricultural vehicles are also creating a positive market outlook. Apart from this, the increasing amount of import taxes on tyre imports to support domestic manufacturers is also acting as another significant growth-induing factor for the market. Furthermore, a consistent rise in the demand for tyres leading to higher investments by local and foreign investors is anticipated to strengthen the market growth in the upcoming years.  

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the Pakistan tyre market report, along with forecasts at the country and regional level from 2024-2032. Our report has categorized the market 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.

Breakup by Vehicle Type:

• Two-Wheeler and Three-Wheeler
• Passenger Cars and Light Truck
• Heavy Commercial and OTR

Two-wheeler and three-wheeler represent the most preferred vehicles in Pakistan. 

Breakup by OEM and Replacement Segment:

• OEM
• Replacement

 At present, replacement tyres account for the majority of the total market share.

Breakup by Domestic Production and Imports:

• Domestic Production
• Imports

Domestic production exhibits a clear dominance in the market as various new players from the automobile industry are setting up tyre manufacturing plants in Pakistan, which is increasing the domestic production in the country.

Breakup by Legitimate and Grey Market:

• Legitimate
• Grey

The legitimate market currently holds the largest market share.

Breakup by Radial and Bias Tyres:

• Bias
• Radial

Presently, bias tyres account for the majority of the market share.

Breakup by Tube and Tubeless Tyres:

• Tube Tyres
• Tubeless Tyres

Tube tyres are widely utilized in Pakistan as they are lightweight and can run on lower air pressure.

Breakup By Regional:

• Punjab
• Sindh
• Khyber Pakhtunkhwa
• Balochistan

Competitive Landscape:

The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Some of these players are:

• General Tyre and Rubber Co. Ltd.
• Panther Tyres Limited
• Diamond Tyres Limited
• Service Industries Limited
• Ghauri Tyre and Tube Pvt. Limited

Report Coverage:

Key Questions Answered in This Report:

• How has the Pakistan tyre market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Pakistan tyre market?
• What are the key regional markets?
• What is the market breakup on the basis of vehicle type?
• What is the market breakup on the basis of OEM and replacement segment?
• What is the market breakup on the basis of domestic production and imports?
• What is the market breakup on the basis of legitimate and grey market?
• What is the market breakup on the basis of radial and bias tyres?
• What is the market breakup on the basis of tube and tubeless tyres?
• What are the various stages in the value chain of the Pakistan tyre industry?
• What are the key driving factors and challenges in the Pakistan tyre industry?
• What is the structure of the Pakistan tyre industry and who are the key players?
• What is the degree of competition in the Pakistan tyre industry?
• What are the profit margins in the Pakistan tyre industry?
• How are tyres manufactured?
• What are the various unit operations involved in a tyre manufacturing plant?
• What is the total size of land required for setting up a tyre manufacturing plant?
• What are the machinery requirements for setting up a tyre manufacturing plant?
• What are the raw material requirements for setting up a tyre manufacturing plant?
• What are the packaging requirements for a tyre manufacturing plant?
• What are the transportation requirements for a tyre manufacturing plant?
• What are the utility requirements for setting up a tyre manufacturing plant?
• What are the manpower requirements for setting up a tyre manufacturing plant?
• What are the infrastructure costs for setting up a tyre manufacturing plant?
• What are the capital costs for setting up a tyre manufacturing plant?
• What are the operating costs for setting up a tyre manufacturing plant?
• What will be the income and expenditures for a tyre manufacturing plant?
• What is the time required to break-even?