GTR leads local tyre industry resilience

The local tyre industry in Pakistan is facing significant challenges, primarily from smuggling activities and low Import Trade Price values. These issues threaten the industry's stability and competitiveness in the market. To combat these challenges, measures such as strict enforcement and enhanced border control are essential to safeguard the industry's interests.

Despite the persistent calls for duty reductions, the industry has demonstrated resilience in meeting market demands. Sectors like motorcycles and agriculture tyres remain unaffected by smuggling activities, showcasing the industry's ability to adapt and thrive in adverse conditions.

GTR, a key player in the market, plays a crucial role in supplying various tyre types and has ambitious plans for further expansion. The industry's significance as an import substitute is underscored by the substantial investments and tax contributions made by companies like GTR.

Annual tyre consumption in Pakistan stands at 14.5 million units, with local production accounting for 25%, imports for 15%, and a staggering 60% being contributed by smuggled tyres. To protect the local industry, the government must prioritize measures to curb smuggling, including stringent enforcement by FBR and tightened control at border check posts.

While duty reductions alone may not suffice to deter smuggling, recent trends indicate the industry's capacity to meet market demands effectively. The motorcycle and agriculture tyre sectors remain resilient, relying on local production to fulfill consumer needs.

GTR's diverse product range, including passenger radial tyres, light truck radial tyres, and SUV variants, underscores its pivotal role in the market. With substantial investments in setting up radial tyre plants, the local industry serves as a cost-effective import substitute, saving millions of dollars and contributing significantly to the economy.

Over the past six years, GTR has invested over 4 billion in plant and equipment and has contributed more than Rs 19 billion in taxes, highlighting its commitment to the industry's growth and sustainability.

The local tyre industry in Pakistan faces challenges from smuggling and low Import Trade Price values, but its resilience and adaptability are evident in meeting market demands. With a focus on curbing smuggling activities and fostering local production, the industry can continue to thrive and contribute significantly to the country's economy.