Pakistan Tire Market to Surpass USD 1.65 Billion by 2026

2016–2026 PAKISTAN TIRE MARKET Forecast and Opportunities Published on: September 2021 www.techsciresearch.com MARKET INTELLIGENCE. CONSULTING

Table of Contents S. No. Contents 1. Product Overview 2. Research Methodology 3. Executive Summary 4. Voice of Customer 4.1. Factors Influencing Purchase Decision 4.2. Brand Recall 4.3. Brand Switching 4.4. Brand Satisfaction Level 5. Pakistan Tire Market Outlook, 2016-2026F 5.1. Market Size & Forecast 5.1.1. By Value & Volume 5.2. Market Share & Forecast (By Volume) 5.2.1. By Vehicle Type (Two-Wheeler, Passenger Car, OTR, Light Commercial Vehicle, Medium & Heavy Commercial Vehicle) 5.2.2. By Demand Category (OEM & Aftermarket) 5.2.3. By Tire Construction Type (Radial Vs Bias) 5.2.4. By Sales Channel (Offline & Online) 5.2.5. By Price Segment (Ultra Budget, Budget, Premium) 5.2.6. By Region 5.2.7. By Top Five Cities (2020) 5.2.8. By Company (2020) 5.3. Vehicle Fleet Size 2016-2026 5.4. Product Market Map (By Vehicle Type, By Region) 2 Automotive © TechSci Research 2

Table of Contents S. No. Contents 6. Pakistan Two-Wheeler Tire Market Outlook, 2016-2026F 6.1. Market Size & Forecast 6.1.1. By Value & Volume 6.2. Market Share & Forecast (By Volume) 6.2.1. By Vehicle Type (Motorcycle, Scooters/Mopeds) 6.2.2. By Demand Category 6.2.3. By Tire Construction Type 6.2.4. By Sales Channel 6.2.5. By Rim Size 6.2.6. By Price Segment 6.3. Prominent Tire Sizes 6.4. Two-Wheeler Fleet Size 2016-2026 7. Pakistan Passenger Car Tire Market Outlook, 2016-2026F 7.1. Market Size & Forecast 7.1.1. By Value & Volume 7.2. Market Share & Forecast (By Volume) 7.2.1. By Vehicle Type (Hatchback, Sedan, SUV/MPV) 7.2.2. By Demand Category 7.2.3. By Tire Construction Type 7.2.4. By Sales Channel 7.2.5. By Rim Size 7.2.6. By Price Segment 7.3. Prominent Tire Sizes 7.4. Passenger Car Fleet Size 2016-2026 3 Automotive © TechSci Research 3

Table of Contents S. No. Contents 8. Pakistan OTR Tire Market Outlook, 2016-2026F 8.1. Market Size & Forecast 8.1.1. By Value & Volume 8.2. Market Share & Forecast (By Volume) 8.2.1. By Application Type (Mining Vehicles, Construction & Industrial Vehicles, Agricultural Vehicles and Others) 8.2.2. By Demand Category 8.2.3. By Tire Construction Type 8.2.4. By Sales Channel 8.2.5. By Rim Size 8.2.6. By Price Segment 8.3. Prominent Tire Sizes 8.4. OTR Fleet Size 2016-2026 9. Pakistan Light Commercial Vehicle (LCV) Tire Market Outlook, 2016-2026F 9.1. Market Size & Forecast 9.1.1. By Value & Volume 9.2. Market Share & Forecast (By Volume) 9.2.1. By Vehicle Type (Pickup Truck, Panel Van) 9.2.2. By Demand Category 9.2.3. By Tire Construction Type 9.2.4. By Sales Channel 9.2.5. By Rim Size 9.2.6. By Price Segment 9.3. Prominent Tire Sizes 9.4. Light Commercial Vehicle Fleet Size 2016-2026 4 Automotive © TechSci Research 4

Table of Contents S. No. Contents 10. Pakistan Medium & Heavy Commercial Vehicle (M&HCV) Tire Market Outlook, 2016-2026F 10.1. Market Size & Forecast 10.1.1. By Value & Volume 10.2. Market Share & Forecast (By Volume) 10.2.1. By Vehicle Type (Truck and Bus) 10.2.2. By Demand Category 10.2.3. By Tire Construction Type 10.2.4. By Sales Channel 10.2.5. By Rim Size 10.2.6. By Price Segment 10.3. Prominent Tire Sizes 10.4. Medium & Heavy Commercial Vehicle Fleet Size 2016-2026 11. Import-Export Analysis 12. Supply Chain Analysis 13. Market Dynamics 13.1. Drivers 13.2. Challenges 14. Market Trends and Developments 15. Policy and Regulatory Landscape 16. Prominent Dealers/Distributors 17. Pakistan Economic Profile 18. Impact of COVID-19 on Pakistan Tire Market 5 Automotive © TechSci Research 5

Table of Contents S. No. Contents Page No. 19. Competitive Landscape 104 19.1. Servis Tyres 105 19.2. Bridgestone Corporation 106 19.3. The General Tyre and Rubber Company of Pakistan Limited 107 19.4. Panther Tyres Limited 108 19.5. Ghauri Tyre & Tube Pvt Ltd 109 19.6. Diamond Tyres Ltd. 110 19.7. Yokohama Rubber Co. Ltd 111 19.8. Crown Tyres Limited 112 19.9. Michelin 113 19.10. Goodyear Tire and Rubber Company 114 20. Strategic Recommendations 115 21. About Us & Disclaimer 121 6 Automotive © TechSci Research 6

Product Overview

Scope of Report Product of Interest (POI): Tire Tire is a ring like component that encircles the vehicle’s rim and meets the ground. Tires are filled with compressed air to provide a gripping surface for traction on the surface over which the vehicle travels. Most vehicles are equipped with pneumatic tires where air is held under pressure inside the tire. Natural rubber is extensively used in fabrication of tires. However, the modern tires make use of materials like synthetic rubber, fabric, steel wires, carbon black, etc. adding advanced characteristics to the tires. Market Segmentation VEHICLE TYPE TIRE CONSTRUCTION PAKISTAN TIRE MARKET • Passenger Car TYPE Year Range • Light Commercial • Radial Vehicle (LCV) • Bias SALES CHANNEL Review Period • Medium and Heavy • Offline 2016 – 2019 Commercial Vehicle • Online (M&HCV) DEMAND CATEGORY Base Year • Off the Road (OTR) • OEM 2020 • Two-Wheeler • Aftermarket Estimated Year PRICE SEGMENT REGION 2021 • Punjab • Ultra Budget • Sindh Forecast Period • Budget • Khyber Pakhtunkhwa 2022 – 2026 • Premium • Others 8 Automotive © TechSci Research 8

Research Methodology

Research Methodology Market Profiling •In-depth secondary research was conducted to determine top players in the Pakistan Tire Data Data Filter Research & Actionable Business market, overall market size and segmental Collection & Analysis Intelligence Insights Solution market size. Formulating Questionnaire •In order to conduct industry experts’ interviews, TechSci formulated a detailed questionnaire. ❑ Identifying Key Opinion Leaders ❑ Questionnaire Design Developing List of Respondents ❑ In-depth Interviews A ❑ Recent Primary Developments •List of industry players and industry specialists Research ❑ Market Changing was developed. B Aspects/Dynamics Desk ❑ Government Data Collection C Research Policies Company ❑ Final Conclusion •TechSci conducted interviews with industry ❑ Market Participants Analysis experts and industry players for data collection ❑ Key Strengths and verification. Data Validation •Data obtained as a result of primary and Primary Secondary Paid Sources secondary research was validated through Research Research rigorous triangulation. ❑ LinkedIn ❑ Company Website ❑ Factiva ❑ TechSci Internal ❑ Company Annual ❑ Hoovers Database Reports Data Analysis ❑ White Paper Study ❑ Financial Reports ❑ Investor •The data was scrutinized using MS-Excel and Presentations statistical tools, such as Time Series Analysis, ❑ Regulatory Body etc. to obtain qualitative and quantitative ❑ Associations, etc. insights about the Pakistan Tire market. 10 Automotive © TechSci Research 10

Research Methodology Baseline Methodology: For the study, TechSci Research gathered information through primary research surveys with leading tire OEMs operating across the country. We also put through an exhaustive search of credible paid databases, such as Business Week, Factiva, Hoovers, etc., including our internal database. Our team of analysts has then prudently evaluated all the collected information and presented the same in chronological order to depict a meaningful and clear picture of the Pakistan Tire market. While compiling the data, we have also cross checked all the collected information from multiple sources and data warehouses, so as to present the most accurate and precise information of the concerned industry. All the data representation done here is in calendar year period, starting from 1st January 2020 to 31st December 2020 until mentioned otherwise. Primary Research – Partial List of Companies Interviewed Few Sources of Secondary Research S. No. Company/Dealers & Distributor Names S. No. Secondary Sources 1. Servis Tyres 2. Bridgestone Corporation 1. OICA 3. The General Tyre and Rubber Company of Pakistan Limited 2. World Bank 4. Panther Tyres Limited 5. Ghauri Tyre & Tube Pvt Ltd 3. PAMA 6. Diamond Tyres Ltd. 4. Industry Magazines 7. Yokohama Rubber Co. Ltd 8. Crown Tyres Limited 5. Credible Paid Database 9. Michelin 10. Goodyear Tire and Rubber Company 11 Automotive © TechSci Research 11

Research Methodology Tire Production TechSci Research has mapped production capacities of almost all tire manufacturing facilities in Pakistan, with the help of a series of primary research surveys of all the major tire manufacturing companies in the country, followed by validation through secondary sources such as company annual reports and industry associations. TechSci Research has been successful in identifying the production capacities of each tire plant as well as their respective plant locations, establishment dates and type of tires manufactured. Vehicle Production, Sales & Fleet Size Basic data points needed for analysis of Pakistan Tire market are the historical, current and forecast figures for vehicle production, sales and fleet size. Data for vehicle sales and fleet size has been extracted through various secondary sources and credible data portals. TechSci Research has also maintained a database for vehicle sales and fleet size for two-wheelers, which is regularly updated through various primary research surveys and secondary sources such as tire associations & government publications. Tire Demand OEMTireSales OEM tire demand has been calculated by multiplying the average number of tires per vehicle to the total number of vehicles produced. For example, for two-wheeler segment, the average number of tires is considered to be two and for passenger cars, the average number of tires is five. 12 Automotive © TechSci Research 12

Research Methodology ReplacementTireSales Replacement tire demand of a particular country is directly dependent on the country’s vehicle fleet size and historical vehicle sales. Replacement tire demand is calculated by multiplying vehicle fleet with replacement tire ratio, which is obtained by conducting a series of surveys with car owners to understand the frequency of tire replacement, as it varies for different countries depending upon the country’s road conditions, climate, economic and regulatory policies, etc. The replacement ratio is expressed as a percentage. For example, in case of two-wheeler, replacement ratio is considered to be 100% if two tires are replaced per vehicle per year. For instance, for passenger car replacement tire demand calculation: Two-wheeler Fleet X Replacement Ratio X No. of Tires = Replacement Size (Volume) (%) Tire Demand 100,000 X 19% X 2 = 38,000 Tires The calculated replacement tire demand data is further analyzed by TechSci Research through Delphi technique, i.e., multiple rounds of telephonic interviews with tire companies/dealers in Pakistan. The information collected is then cross-verified through industry experts and secondary sources, such as annual reports and paid databases to generate meaningful results. Total Tire Market Forecast OEM Tire Sales + Replacement Tire Sales = Total Tire Market Forecast For forecasting the numbers, we have used time series analysis along with regression analysis, followed by judgmental analysis. 13 Automotive © TechSci Research 13

Industry Brief According to TechSci Research report, “Pakistan Tire Market By Vehicle Type (Two-Wheeler, Passenger Car, OTR, Light Commercial Vehicle, Medium & Heavy Commercial Vehicle), By Demand Category (OEM & Aftermarket), By Tire Construction Type (Radial and Bias), By Sales Channel (Offline and Online), By Price Segment (Ultra Budget, Budget, Premium), By Region, Competition, Forecast & Opportunities, 2026”, Pakistan tire market is anticipated to reach USD 1.65 billion at a CAGR of 8.47% by 2026 because of rapidly broadening fleet size of vehicles. The increase in per capita income has resulted in an increase in purchasing power as well as a rise in the population's standard of living. This has resulted in advancement of vehicle sales as well as expansion of fleet size, leading to increase in the replacement demand for tires in Pakistan. Also, high restoration rate has been witnessed due to poor infrastructure in rural areas across the country. When vehicles are driven on poor roads, tires tread wears down speedily and results in increased aftermarket tire demand. An increasing number of new models of cars are being launched due to high interest and choice among citizens in Pakistan. Consequently, various passenger car manufacturers are asserting the introduction of new models with enhanced and advanced safety features. The demand for two wheelers is going to remain high in the near future, which is expected to boost the demand for tires in Pakistan through 2026. However, during the COVID-19 outbreak, which led to economic crisis in 2020, the country's automotive sales collapsed considerably. Following the COVID-19, the tire market has again gained some pace in Pakistan. Following a compelling reduction in production and sales in recent months, vehicle production has resumed, with sales also increasing, which has increased the demand for tires in the OEM category. Increased tires sales via e-commerce websites are also benefiting the tires market. Pakistan tire market can be segmented based on demand category, by vehicle type, by tire construction type, by sales channel, by price segment and by region. On the basis of demand category, aftermarket tires dominate the overall Pakistan tire market with around 72% of total market share in 2020. And because of expanding fleet size of the vehicle, it is forecasted that the trend is going to be the same in upcoming years also. Onthebasis of vehicle type, two-wheelers tires are leading the Pakistan tire market with more than half of the total market followed by passenger cars, OTR, LCV and M&HCV. In the forecast period also, it is expected that two-wheeler tires will generate the highest demand in terms of vehicle type in the Pakistan tire market. On the basis of tire construction type, bias tires are monopolizing the Pakistan tire market over radial tire with almost 77% of the market share. This is mainly due to the expected increase in fleet of two wheelers in the forecast period. Servis Tyres, Panther Tyres Limited, The General Tyre and Rubber Company of Pakistan Limited, Diamond Tyres Ltd., Goodyear Tire and Rubber Company, Others (Ghauri Tyre & Tube Pvt Ltd, Yokohama Rubber Co. Ltd, etc.) are the key players in the market. The key players are developing advanced technologies and launching new products to stay competitive in the market. Other competitive strategies include mergers and acquisitions, new product developments. They are also increasing their marketing activities and enriching product portfolio across the country to increase their customer outreach. “In 2020, two-wheelers tires accounted for the largest share in Pakistan tire market. This segment is expected to dominate in the future as well because of rising sales and growing fleet size of two-wheelers in Pakistan.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global managementconsulting firm. Automotive © TechSci Research 14

Sample Data -Snapshot Pakistan Tire Market Size, By Value (USD Billion), 2016-2026F CAGR 2016-2020 CAGR 2021E-2026F By Value: xx% By Value: xx% 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2016 2017 2018 2019 2020 2021E 2022F 2023F 2024F 2025F 2026F Value (USD Billion) Pakistan Two-Wheeler Tire Market Share, By Vehicle Type, By Volume, 2016–2026F 2016 2017 2018 2019 2020 2021E 2022F 2023F 2024F 2025F 2026F Motorcycle 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% Scooters/Mopeds 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% Pakistan Medium & Heavy Commercial Vehicle Tire Market Share, By Demand Category, By Volume, 2016–2026F 2016 2017 2018 2019 2020 2021E 2022F 2023F 2024F 2025F 2026F Aftermarket 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% OEM 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% Automotive © TechSci Research 15

Report Ordering Report Name: PAKISTAN TIRE MARKET Forecast and Opportunities 2016–2026 License Type Price Single User License $3500 Multi-User License $4500 Custom Research License $7500 To View Sample OR Purchase Report Automotive © TechSci Research 16

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