According to a recent report, Chinese tyres have captured 85 per cent of Pakistan’s market share, which is a substantial 45 per cent increase from two years ago.
The takeover of the local market share by a Chinese product is not uncanny and is similar to several Made in China products that have flooded local markets.
Earlier, the Chinese car tyres held 40 per cent of the market share in 2018. The share now has since increased to 85 per cent. “In the light truck category tyres, China held a share of 30-40 per cent two years ago which has now gone up to 65-70 per cent,” the report said.
Moreover, Beijing also dominates in truck/bus tyres with over 75 per cent market share which was merely 40 per cent two years back. “Mushroom growth has been noted in the number of dealers who are regularly flooding the market with Chinese tyres,” former chairman of the Pakistan Tyre Importers and Dealers Association (PTIDA) Azim K. Yousufzai said.
He further said the low prices were the main reason for the surging market share of Chinese tyres. They are cheaper than European, Korean, Thai and American tyres.
Over the decrease in sales of Pakistani tyres, the association leader said that the government has reduced the regulatory duty (RD) to 10-20 per cent for various categories of imported tyres which is among the factors encouraging legal imports.