Pakistan enters top 10 global exporters of truck, bus radial tyres

Pakistan has emerged among the world’s top 10 exporters of Truck and Bus Radial (TBR) tyres to major markets including the United States and Brazil, reflecting growing export activity in the country’s tyre manufacturing sector, according to a news report. 

Officials in the Commerce Ministry said tyre exports from Pakistan had expanded significantly in recent years, with the United States and Brazil becoming key destinations.

At the centre of the export growth is Service Long March Tyres Limited, which began operations in 2022 and has expanded exports to markets including South Africa and Egypt alongside the US and Brazil.

The company is a joint venture between the Servis Group and China’s Chaoyang Long March Tyre Co., which operates in more than 140 countries with an annual turnover of around $580 million.

According to industry officials, export growth has been supported by compliance with international certification and quality standards required in regulated markets.

The company currently exports nearly 40% of its Truck and Bus Radial tyre production and uses Chinese manufacturing technology to maintain lower production costs compared to other domestic producers.

Pakistan’s annual demand for truck and bus tyres is estimated at around 1.7 million units, while passenger vehicle tyre demand stands at approximately 7 million units annually.

According to IMS Research, Service Long March Tyres Limited plans to raise ₨5.55 billion through what could become Pakistan’s largest private-sector initial public offering at the ceiling price.

The company is offering 389.7 million shares at a floor price of ₨14.25 per share. At the floor price, the IPO would become Pakistan’s second-largest private-sector listing. 

Following the IPO, Long March will hold 40% stake in the company while Servis Group entities will own 47%, with a free float of around 5%.

Industry officials said the company had benefited from access to Chinese manufacturing technology and distribution networks while positioning Pakistan as an alternative export base amid anti-dumping and countervailing duties imposed on Chinese tyre exports in the United States and investigations launched by the European Union into Chinese passenger car radial tyre producers. 

According to industry estimates, Pakistan’s annual demand for truck and bus tyres stands at around 1.7 million units, while passenger vehicle tyre demand is estimated at approximately 7 million units annually.

Despite holding nearly 55% share of Pakistan’s all-steel TBR segment, domestic production currently fulfils only around 10% of total TBR demand, with the remainder met through imports and grey market channels.

The company currently produces around 1.6 million TBR tyres annually and operates at approximately 99% capacity utilisation.