KARACHI: The success of Pakistan’s exports of tyres is one that not many thought would ever be possible when the tyre manufacturing industry in the country was only just starting out. The reason for this is that the country has managed to rank itself among the top ten countries in the exportation of radial tyres for trucks and buses in the world.
This rank not only signifies a business success but much more. The entry of Pakistani tire exports in the list of the world’s best is indicative of the major change that has taken place in the industrial character of Pakistan, which has gone from being an importer of tires to competing with leading Asian and European tire exporters.
SLM Helps Boost Pakistan Tyre Exports
From Zero to Top Ten in Four Years
The Service Long March Tyres Limited has emerged at the heart of the Pakistan tyre exports growth journey that has been achieved at an impressive pace since the inception of the company in 2022. Within a period of just four years, SLM has diversified its presence globally into the US, Brazil, South Africa, and Egypt. The company has secured market penetration in strict markets that require certification compliance for suppliers to enter.
SLM is now exporting 37% of all its truck and bus radial tyre manufacturing – which makes Pakistan tyre exportation a business strategy for the country rather than merely an extra opportunity because of excess domestic production. This focus on exports demonstrates a conscious strategy on behalf of Pakistan tyre export manufacturers to establish themselves as dependable global suppliers of tyres.
Advantage from Technology and Cost Structure
In addition, SLM is able to utilize leading manufacturing technology of Chinese origin to enjoy low production costs, compared to any other tire manufacturer within Pakistan. The resultant export prices are highly competitive since, in most cases, buyers evaluate several suppliers prior to engaging in business transactions.
The tyre exports of Pakistan enjoy such competitive positioning, which allows them to not only offer superior-quality tyres but also to do so at affordable prices compared to competing countries that are more developed in tyre production.
Strong Domestic Position Fuels Export Aspirations
TBR Market Share of 58%
Further impetus to the exports of tyres from Pakistan is provided by the strong presence of SLM within Pakistan’s domestic market. With a market share of about 58%, the company has achieved dominance within the Pakistani market, which requires around 1.7 million TBR tyres in addition to around 7 million passenger tyres on an annual basis.
Previously, Pakistan relied heavily on imports to meet its requirements in the country. The local industry is slowly taking over the imports, while simultaneously conserving the much-needed foreign exchange and increasing the quantity needed for export competition. The annual tire manufacturing by SLM stands at 1.6 million units and plans to increase production to 2 million units by July 2026 and 2.2 million units by June 2027.
The Benefits of Manufacturing at Nooriabad SEZ
Moreover, the manufacturing plant located at the Nooriabad SEZ offers SLM several logistics and cost savings that enhance the effectiveness of their operations within the country and the competitiveness of their tyre exports from Pakistan. The benefits associated with manufacturing in an SEZ include tax concessions and other infrastructure advantages.
What the Pakistan Tyres Exports Experience Means for the Industry
A Growth Strategy through Exports is Developed
Pakistan’s experience with its tyre exports demonstrates how success through exports can be achieved by adopting an export-led model of growth. The convergence of new technology, international standards, location in SEZs, and proper marketing has created an environment ripe for fast market penetration that Pakistan’s other industries can emulate.
The industry experts believe that the export growth of tyres from Pakistan, along with the entry of SLM into the market of passenger cars tyre production, indicates that this industry has the potential to become a lucrative source of earning foreign exchange income by providing Pakistan with a new dimension of industrial manufacturing along with the traditional textile industry.
The success of tyre exports from Pakistan into North America and South America as well as Africa proves that Pakistani industries can stand firm against competition if they possess world-class manufacturing skills, competitive pricing, and the right attitude toward marketing internationally.
