By Muhammad Asad Tahir Bhawana ISLAMABAD, April 14 INP-WealthPK): The volume of the Pakistan’s tyre market will reach 32.2 million units by 2026 from 21 million units in 2020, according to a report released by the International Market Analysis Research and Consulting (IMARC), a leading adviser on management strategy and market research worldwide. The Pakistan Tyre Market: Industry Trends, Share, Size, Growth, Opportunity, and Forecast 2021-2026 report states that the current value of the Pakistani tyre market stands at Rs152.2 billion and is expected to reach Rs252.46 billion by 2027, with a production of about 41.43 million units. The market is also expected to grow at a compound annual growth rate (CAGR) of 8.7% between 2022 to 2027, according to the report. In terms of the dollar, the market is expected to reach $1,592 million by 2025, growing at a CAGR of 24.8%. The growth in Pakistan’s tyre industry is due to entry of many competitors in the market. The production of durable quality and sustainable tyres with a lower production cost increases the competition in the market, leading to increased industry volume, according to WealthPK. Moreover, the new automobile policy has led to the establishment of new assembling units in the country, thus creating room for the tyre industry to increase production. One of the most important factors that has led to an upsurge in the market volume of the tyre industry is an increase in the production of both passenger and private vehicles amid growing demand. This trend has also attracted foreign investment in the tyre industry, with firms bringing in advanced technology, which has not only helped decrease the cost of production but also minimise the time to produce a certain number of tyres. A Chinese company, Chaoyang Long March Co, is also helping the country modernise its tyre industry. According to the company’s director Li Qingwen, “We are helping Pakistan produce tyres of international standards.” Despite these positive signs, Pakistan’s tyre production capacity has traditionally been lagging due to a lack of technology and investment and over-reliance on imports. According to industry sources, the country imports $300 million to $400 million worth of steel radial tyres annually. However, with the help of Chinese expertise, the local producers will be able to get training from experts and produce high-quality tyres. Despite challenges, the long-term growth potential for the tyre sector remains intact as vehicles sales keep increasing. Some other factors that have contributed to the current upsurge in the tyre production volume include an increase in automotive production, growth in tyre retreading, and tax exemptions on the import of raw materials.