As trade around the world continues to get more restricted amid the pandemic, it is getting increasingly difficult for traders to import goods from distant countries. This is evidently why it has been reported that the Pakistani tire market is being taken over by the low-cost Chinese tires.
As reported by Dawn, the Chinese tires have taken hold of 85 percent of the Pakistani tire market. In 2018, Chinese tires had been holding a respectable 45 percent of the market, and in two years, their market share has increased by 40 percent in the passenger vehicle segment alone.
Reportedly, the light and heavy commercial vehicle category held 30-40 percent of the market share in 2018, which has increased up to 70-75 percent in 2021.
While discussing the matter, former chairman of the Pakistan Tyre Importers and Dealers Association (PTIDA), Azim K. Yousufzai, told the media outlet,
Mushroom growth has been noted in the number of dealers who are regularly flooding the market with Chinese tires.
Yousafzai also highlighted that the rising prices of the Japanese, Thai, European, Korean, and American tire companies are also one of the prime reasons for the increase in the market share of Chinese tires in Pakistan.
He said that tire smuggling has been brought down to 20 percent from 40-60 percent. Adding that tire smuggling has been contained by a significant degree due to a strict check and balance on the Landi Kotal border. However, truck tires are still making their way into the market through the Chaman border, which is an area that needs more attention, he said.