ISLAMABAD: The volume of the Pakistan’s tyre market will reach 32.2 million units by 2026 from 21 million units in 2020, WealthPK reported.
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 a report released by the International Market Analysis Research and Consulting (IMARC), a leading adviser on management strategy and market research worldwide.
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 a report.
Moreover, the new automobile policy has led to 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 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. –INP
