As indicated in the latest market research report published by IMARC Group, titled "Pakistan Tyre Market Report by Vehicle Type (Two-Wheeler and Three-Wheeler, Passenger Cars and Light Truck, Heavy Commercial and OTR), OEM and Replacement Segment (OEM, Replacement), Domestic Production and Imports (Domestic Production, Imports), Legitimate and Grey Market (Legitimate, Grey), Radial and Bias Tyres (Bias, Radial), Tube and Tubeless Tyres (Tube Tyres, Tubeless Tyres), and Region 2025-2033," this report provides an in-depth analysis of the industry, featuring insights into the market. It encompasses competitor and regional analyses, as well as recent advancements in the market.
Market Size & Future Growth Potential:
The Pakistan tyre market size reached 25 Million Units in 2024. Looking forward, IMARC Group expects the market to reach 36.0 Million Units by 2033, exhibiting a growth rate (CAGR) of 4.1% during 2025-2033.
Latest Market Trends:
The market is experiencing unprecedented growth driven by the country's rapidly expanding automotive sector and increasing vehicle ownership rates. With the Asian Transport Observatory projecting the addition of approximately 31 million two- and three-wheelers and 5 million light-duty vehicles on Pakistan's roads between 2020 and 2050, the tyre industry is witnessing sustained demand across all segments. The motorization rate is expected to reach 270 vehicles per 1,000 individuals by 2050, creating a robust consumer base for tyre manufacturers.
The rise of e-commerce and digital commerce platforms is significantly reshaping the market landscape. The online shopping industry in Pakistan is likely to grow to USD 14.1 Billion by 2024, driven by growing internet penetration, the adoption of digital banking, and the active participation of more than 87 million social media users. This digital transformation is facilitating last-mile delivery services, increasing demand for commercial vehicle tyres and creating new distribution channels for tyre retailers.
Government policy initiatives are playing a crucial role in market development, with import duties on tyres reaching up to 30% in 2023 to protect domestic manufacturers. These measures have resulted in an 18% year-on-year growth in domestic production while import volumes decreased by 22% in 2022-23. The policy environment is encouraging local manufacturing investments and technological upgrades in production facilities.
Additionally, infrastructure development projects under the China-Pakistan Economic Corridor (CPEC) and other government initiatives are boosting demand for commercial vehicle tyres. The construction and logistics sectors are experiencing significant growth, with heavy-duty vehicles requiring specialized tyres for challenging road conditions and extended operational hours.
Market Scope and Growth Factors:
The scope of the Pakistan tyre market is expanding as the country undergoes rapid urbanization and industrial development. The industrial sector, including construction, contributed 20.7% to Pakistan's GDP in 2023, reflecting increased activity in sectors that heavily utilize commercial vehicles and specialized equipment requiring quality tyres.
The replacement segment dominates the market with a 72.9% share, driven by Pakistan's challenging road conditions and extreme weather patterns that accelerate tyre wear. The country's vast existing vehicle fleet, including aging cars, motorcycles, and commercial vehicles, creates consistent demand for aftermarket tyres. This segment benefits from the growth of ride-hailing services, logistics companies, and public transport systems that log higher mileage and require frequent tyre replacements.
Regional dynamics show Punjab leading with 38.0% market share due to its dense population, extensive road networks, and higher vehicle ownership rates. The province serves as Pakistan's industrial and logistics hub, with major urban centers driving both personal and commercial vehicle demand. The well-developed agricultural sector in Punjab also contributes to robust demand for tractor and off-road tyres.
The market is witnessing a technological shift with increasing consumer awareness about tyre safety and performance. While bias tyres currently dominate due to their cost-effectiveness and suitability for rough roads, radial tyres are gradually gaining acceptance in premium vehicle segments. Local manufacturers are investing in advanced production technologies to improve tyre quality and durability while maintaining competitive pricing.
Domestic production continues to strengthen its position, holding 58.6% market share, supported by government incentives and favorable investment policies. Local manufacturers are focusing on producing cost-effective tyres tailored to Pakistan's specific road conditions and consumer preferences, particularly for two-wheelers and commercial vehicles.
Recent News and Developments:
• General Tyre and Rubber Company (GTR) announced plans to establish a new manufacturing facility in the Special Economic Zone (SEZ) in Faisalabad, with investments aimed at doubling manufacturing capacity and enhancing exports to USD 100 million annually by 2025.
• The government implemented higher import tariffs of up to 30% on tyre imports in 2023 to protect domestic manufacturers, resulting in an 18% increase in local production and a 22% decrease in import volumes during 2022-23.
• Panther Tyres Limited expanded its production capacity to meet growing demand in the commercial vehicle segment, particularly focusing on bias tyres suitable for Pakistan's road conditions.
• The Auto Industry Development Program (AIDP) introduced new incentives for local tyre manufacturers, promoting technology transfer and encouraging foreign investment in the sector.
• Several major automotive manufacturers announced partnerships with local tyre companies to supply OEM tyres for new vehicle models, strengthening the domestic supply chain.
• The legitimate tyre market strengthened its position against grey market alternatives through improved regulatory enforcement and consumer awareness campaigns highlighting safety and quality standards.
• Investment in digital distribution channels increased significantly, with several tyre manufacturers launching online platforms to reach customers in remote areas and improve supply chain efficiency.
Explore the Full Report with Charts, Table of Contents, and List of Figures: https://www.imarcgroup.com/pakistan-tyre-market
Comprehensive Market Report Highlights & Segmentation Analysis:
The market report offers a comprehensive analysis of the segments, highlighting those with the largest Pakistan Tyre Market Share. It includes forecasts for the period 2025-2033 and historical data from 2019-2024 for the following segments.
Analysis by Vehicle Type:
- Two-Wheeler and Three-Wheeler
- Passenger Cars and Light Truck
- Heavy Commercial and OTR
Segmentation by OEM and Replacement Segment:
- OEM
- Replacement
Analysis by Domestic Production and Imports:
- Domestic Production
- Imports
Analysis by Legitimate and Grey Market:
- Legitimate
- Grey
Analysis by Radial and Bias Tyres:
- Bias
- Radial
Analysis by Tube and Tubeless Tyres:
- Tube Tyres
- Tubeless Tyres
Regional Analysis:
- Punjab
- Sindh
- Khyber Pakhtunkhwa
- Balochistan
Competitor Landscape:
The report offers an in-depth examination of the competitive landscape. It includes a thorough competitive analysis encompassing market structure, key player positioning, leading strategies for success, a competitive dashboard, and a company evaluation quadrant.
Major Players in the Pakistan Tyre Market:
- General Tyre and Rubber Co. Ltd.
- Panther Tyres Limited
- Diamond Tyres Limited
- Service Industries Limited
- Ghauri Tyre and Tube Pvt. Limited
Key highlights of the Report:
- Historical Market Performance
- Future Market Projections
- Impact of COVID-19 on Market Dynamics
- Industry Competitive Analysis (Porter’s Five Forces)
- Market Dynamics and Growth Drivers
- SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)
- Market Ecosystem and Value Creation Framework
- Competitive Positioning and Benchmarking Strategies
Major Advantages of the Report:
• This report provides market leaders and new entrants with accurate revenue estimates for the overall market and its key subsegments.
• Stakeholders can leverage this report to gain a deeper understanding of the competitive landscape, enabling them to strategically position their businesses and develop effective go-to-market strategies.
• The report provides stakeholders with valuable insights into the market dynamics, offering a comprehensive analysis of key drivers, restraints, challenges, and opportunities.
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• Extensive Industry Expertise
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• Precise Forecasting Capabilities
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