By Qudsia Bano

Pakistan’s tyre industry is gradually emerging as a non-textile export sector, supported by foreign investment, improving production capacity, and expanding access to international markets.

Recent developments indicate a structural shift in the country’s industrial base. A China-backed joint venture, Service Long March Tyres, has announced a $120 million expansion plan aimed at scaling up output and increasing exports beyond $100 million in the next fiscal year. The company is already on track to achieve exports of around $70 million by mid-2026, indicating growing demand in overseas markets.

Pakistan’s presence in the global tyre trade has expanded in recent years. The country is now among the leading exporters to key markets, including ranking as the fifth-largest supplier of tyres to the United States and the seventh-largest to Brazil. This reflects a notable transition from minimal export volumes just a few years ago, highlighting the pace at which the sector is gaining traction.

The growth is largely driven by technology transfer and collaboration with Chinese manufacturers, enabling local producers to meet international quality and safety standards. Modern manufacturing facilities, including the Nooriabad plant in Sindh, are playing a central role in this transformation, with an annual production capacity expected to reach around 2.4 million tyres and providing direct employment to approximately 2,000 workers.

Industry estimates suggest that Pakistan’s tyre sector has the potential to generate substantial export revenues if current momentum is sustained. Projections indicate that exports could increase by up to $300 million annually over the coming years, supported by rising global demand for automotive products and Pakistan’s competitive production costs.

Muhammad Ahsan, an industry analyst at Pakistan Tyre Importers and Dealers Association, said the sector’s recent performance reflects a deeper industrial shift rather than a short-term spike. He noted that local manufacturing capacity has improved significantly due to foreign partnerships, enabling Pakistani firms to compete in markets that were previously dominated by established global players.

He added that the expansion of exports to countries such as the United States and Brazil demonstrates growing confidence in the quality of Pakistani tyres. According to him, sustained policy support, particularly in the form of balanced tariffs and export incentives, will be critical to translating this momentum into long-term growth.

Ali Raza, a production manager at a Karachi-based tyre manufacturing facility, said the adoption of advanced machinery and quality control systems has played a key role in improving output standards. He explained that modern plants are now capable of producing tyres that meet international certification requirements, opening access to new export destinations.

He further noted that the industry is benefiting from economies of scale as production volumes increase, helping reduce costs and improve competitiveness. However, he emphasised that continued investment in research and development, along with a stable energy supply, will be essential to sustaining growth and maintaining export competitiveness.

The rise of the tyre industry comes at a time when Pakistan is seeking to diversify its export base beyond textiles, which continue to dominate the country’s trade profile. Engineering goods such as tyres offer higher value addition and greater resilience to global market fluctuations, making them an important avenue for export-led growth.

At the same time, increased local production is expected to reduce reliance on imports, which have historically placed pressure on foreign exchange reserves. By expanding domestic manufacturing and boosting exports, the tyre sector is contributing to both industrial development and external sector stability.

As investment plans advance and global demand remains firm, Pakistan’s tyre industry appears positioned to strengthen its presence in international markets, with export growth likely to unfold gradually in line with capacity expansion and policy support.

Credit: INP-WealthPk