The Pakistan tyre market reached a consumption volume of 20.9 Million Units in 2018, expanding at a CAGR of nearly 6.4% during 2011-2018. A tyre is a component fitted around the rim of a wheel in order to transfer the load of a vehicle from the axle to the ground. It can be made of various materials which include natural rubber, synthetic rubber, carbon black, fabric and wire along with other chemical compounds. The footprint of a tyre is designed so that the vehicle's weight is in accordance with the bearing strength of the surface. Majority of the tyres are pneumatically inflated through which they offer a flexible cushion that absorbs shock when the tyre travels over a rough surface. With an increase in the vehicle motorisation rate in Pakistan, the demand for tyres has witnessed a positive surge in the recent years.
The market for tyres is currently witnessing strong growth in Pakistan. There has been an increase in vehicle ownership as well as enhancements in road infrastructure across the country. In addition to this, the government has been focussing on infrastructural and macroeconomic reforms leading to a rapid rise in the industrial, construction and agriculture sectors. This will, in turn, catalyse the growth of the automotive industry of Pakistan. The Government has also implemented increased taxes on imports of tyres in order to promote and strengthen its domestic manufacturers which has further propelled the market growth. Moreover, on account of a consistent rise in the demand for tyres, local as well as foreign investors have started showing a keen interest in the tyre industry of Pakistan. Looking forward, the tyre market in Pakistan is projected to reach 28.5 Million Units by 2024.
Based on the vehicle type, the market has been segmented into two wheelers and three wheelers; passenger cars and light truck tyres; and heavy commercial and OTR tyres. Amongst these, two wheelers and three wheelers currently represent the largest segment.
The report has analysed the production aspects of OEM and replacement tyres across the region. Currently, replacement tyres account for the majority of the total market.
On the basis of domestic production vs imports, domestic production currently accounts for a higher share in the tyre industry of Pakistan.
The Pakistan tyre market has also been segregated on the basis of legitimate and grey market with the legitimate market currently accounting for a higher share.
Based on the tyre type, the market has been categorised into bias and radial. Radial tyres currently dominate the market.
The market has also been segmented on the basis of tube and tubeless tyres. Tubeless tyres currently represent the biggest segment.
On a geographical front, Punjab currently dominates the Pakistan tyre market accounting for the majority of the share. Some of the other major markets include Sindh, Khyber Pakhtunkhwa and Balochistan.
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 are the key regional markets in the Pakistan tyre industry?
- What is the breakup of the Pakistan tyre market on the basis of product type?
- What is the breakup of the Pakistan tyre market on the basis of application?
- What is the breakup of the Pakistan tyre market on the basis of vehicle type?
- 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?
2 Scope and Methodology
2.1 Objectives of the Study
2.3 Data Sources
2.3.1 Primary Sources
2.3.2 Secondary Sources
2.4 Market Estimation
2.4.1 Bottom-Up Approach
2.4.2 Top-Down Approach
2.5 Forecasting Methodology
3 Executive Summary
4.2 Key Industry Trends
5 Pakistan Automobile Industry
5.2 Production Trends
5.2.1 Market Performance
5.2.2 Market Breakup by Vehicle Type
5.2.3 Market Breakup by Region
5.2.4 Market Forecast
5.3 Vehicles Registration in Pakistan
5.3.1 Market Performance
5.3.2 Vehicle Registration by Region
5.4 New Industry Entrants
6 Pakistan Tyre Market
6.1 Market Overview
6.2 Market Performance
6.2.1 Volume Trends
6.2.2 Value Trends
6.3 Market Breakup by Vehicle Type
6.4 Market Breakup OEM and Replacement Segment
6.5 Market Breakup by Domestic Production and Imports
6.6 Market Breakup by Legitimate and Grey Market
6.7 Market Breakup by Radial and Bias Tyre
6.8 Market Breakup by Tube and Tubeless Tyre
6.9 Market Breakup by Region
6.10 Market Forecast
6.11 SWOT Analysis
6.12 Value Chain Analysis
6.12.2 Research and Development
6.12.3 Raw Material Procurement
6.12.4 Tyre Manufacturing
6.13 Porters Five Forces Analysis
6.13.2 Bargaining Power of Buyers
6.13.3 Bargaining Power of Suppliers
6.13.4 Degree of Competition
6.13.5 Threat of New Entrants
6.13.6 Threat of Substitutes
6.14 Price Analysis
6.14.1 Price Indicators
6.14.2 Price Structure
7 Market Breakup by Vehicle Type
7.1 Two Wheeler and Three Wheeler Tyres
7.1.1 Market Trends
7.1.2 Market Forecast
7.2 Passenger Cars and Light Truck Tyres
7.2.1 Market Trends
7.2.2 Market Forecast
7.3 Heavy Commercial and OTR Tyres
7.3.1 Market Trends
7.3.2 Market Forecast
8 Market Breakup by OEM and Replacement Segment
8.1 OEM Tyres
8.1.1 Market Trends
8.1.2 Market Forecast
8.2 Replacement Tyres
8.2.1 Market Trends
8.2.2 Market Forecast
9 Market Breakup by Domestic Production and Imports
9.1 Domestic Production
10 Market Breakup by Legitimate and Grey Market
10.1 Legitimate Market
10.1.1 Market Trends
10.1.2 Market Forecast
10.2 Grey Market
10.2.1 Market Trends
10.2.2 Market Forecast
11 Market Breakup by Radial and Bias Tyres
11.1 Bias Tyres
11.1.1 Market Trends
11.1.2 Market Forecast
11.2 Radial Tyres
11.2.1 Market Trends
11.2.2 Market Forecast
12 Market Breakup by Tube and Tubeless Tyres
12.1 Tube Tyres
12.1.1 Market Trends
12.1.2 Market Forecast
12.2 Tubeless Tyres
12.2.1 Market Trends
12.2.2 Market Forecast
13 Market Breakup by Region
13.3 Khyber Paktunkhwa
14 Foreign Direct Investment in Pakistan
15 Tyre Manufacturing Process
15.1 Product Overview
15.2 Radial Tyre Component
15.3 Tyre Design Process
15.4 Detailed Process Flow
15.5 Various Types of Unit Operations Involved
15.6 Tyre Performance Criteria
15.7 Technical tests
15.8 Mass Balance and Raw Material Requirements
16 Project Details, Requirements and Costs Involved
16.1 Land, Location and Site Development
16.1.1 Overview of Land Location
220.127.116.11 Project Planning and Phasing of Development
18.104.22.168 Environmental Impacts
16.1.2 Land Requirement and Expenditure
16.2 Plant Layout
16.3 Plant Machinery
16.3.1 Machinery Costs
16.3.2 Machinery Suppliers
16.3.3 Machinery Pictures
16.4 Raw Materials
16.4.1 Raw Material Required and Specifications
16.4.2 Raw Material Procurement
16.4.3 Raw Material Expenditure
16.4.4 Raw Material Supplier
16.4.5 Raw Material and Final Product Pictures
16.5 Packaging Requirements and Expenditures
16.6 Transportation Requirements and Expenditures
16.7 Utilities Requirements and Expenditures
16.8 Manpower Requirements and Expenditures
16.9 Other Capital Investments
17 Loans and Financial Assistance
18 Project Economics
18.1 Capital Cost of the Project
18.2 Techno-Economic Parameters
18.3 Product Pricing and Margins Across Various Levels of the Supply Chain
18.4 Taxation and Depreciation
18.5 Income Projections
18.6 Expenditure Projections
18.7 Financial Analysis
18.7.1 Liquidity Analysis
18.7.2 Profitability Analysis
22.214.171.124 Payback Period
126.96.36.199 Net Present Value:
188.8.131.52 Internal Rate of Return
184.108.40.206 Profit and Loss Account
18.7.3 Uncertainty Analysis
18.7.4 Sensitivity Analysis
18.8 Economic Analysis
19 Case Study - Apollo Tyre
20 Competitive Landscape
20.1 Key Players
20.2 Key Players Profiles
20.2.1 General Tyre and Rubber Co. Ltd.
220.127.116.11 Company Overview
18.104.22.168 Company Description
20.2.2 Panther Tyres Limited
22.214.171.124 Company Overview
126.96.36.199 Company Description
20.2.3 Diamond Tyres Limited
188.8.131.52 Company Overview
184.108.40.206 Company Description
20.2.4 Service Industries Limited
220.127.116.11 Company Overview
18.104.22.168 Company Description
20.2.5 Ghauri Tyre and Tube Pvt. Limited
22.214.171.124 Company Overview
126.96.36.199 Company Description