With 65 pct share, Chinese tyres atop Pakistan local market
by Yasir Habib Khan
ISLAMABAD, April 8 (Gwadar Pro) – Pakistan has embraced the Chinese tyres for its premier quality, affordable price and longer durability.
With almost 65 percent penetration throughout the country, China-made tyres are in high demand for all kind of wheeled motor vehicles for general public and commercial transportation.
In an interview with Gwadar Pro, Pakistan Tyre Importers Dealers Association (PTIDA) Secretary-General Ghulam Farid said categorically that the Chinese tyres are popular in Pakistan’s local markets. Since Chinese tyres perform in all season, Pakistan people tend to buy them with peace of mind, he opined.
“The Chinese tyres have earned the trust of local customers as they give results in harsh weathers like hot temperature or torrential rains,” he mentioned in reply of query.
“As per local customers’ feedback, Chines tyres surpass other foreign companies’ tyres in term of firm road grip and quality ride,” he added.
Back in 2016, Chinese car tyres held 35 percent of the market share, which has escalated to approximately 65 percent in 2021. Mr Ghulam Farid acknowledged that CPEC has been a new binding force between China and Pakistan that steered to boom the China-made products including these tryers in country’s local market.
An official of the Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI) said that the tyre industry of Pakistan hardly meets 12 to 15 percent of demand and the shortfall paved the way for Chinese companies which is a good omen.
“Keeping in view the growing demand, the government can attract domestic as well as foreign investment in the rubber tyre industry by resolving structural problems of the sector,” PCJCCI said.
IMARC, a leading market research company that provides market and business research intelligence across globe, revealed in its report that Pakistan tyre market exhibited moderate growth during 2015-2020. Looking forward, IMARC Group expects the Pakistan tyre market to reach a volume of 32.2 Million Units by 2026.
Given the encouraging situation, China and Pakistan are heading for Joint Ventures (JVs) in tyre industry. The Service Industries Limited and Chaoyang Long March Tyre Company already signed a joined venture worth $250 million to produce all steel radial truck and bus tyres, with likely $100 million exports in the first year of production. Commerce and Trade Advisor Razaak Dawood, said Chinese agreed to invest in a venture that not only has unlimited potential for exports, but would also save millions of dollars spent yearly on the import of heavy tyres.
“The new production facility is being established in Pakistan at a time when the US and European Union (EU) have imposed anti-dumping and countervailing duties on tyres made in China. The development may help the joint venture win export orders from Western markets as the grant of tax exemptions to the company will keep its cost of production comparatively low. The scheme is in line with the government’s key target of attracting new investment in exports projects to improve the country’s international payment capacity and build foreign currency reserves,” media reports said.