Servis Tyres, Pakistan’s top tyre manufacturer, is expanding globally with a focus on motorcycle, bicycle and agricultural tyres. With a presence in 50+ countries, it drives growth through strategic joint ventures, advanced technology and sustainability. While facing industry challenges, Servis leverages cost advantages and international certifications to stay competitive.

MARKET POSITION AND PRODUCTION CAPACITY

Servis Tyres has established itself as Pakistan’s leading tyre manufacturer and exporter, currently serving more than 50 countries globally. The company strategically specialises in motorcycle, bicycle and agricultural tyres, positioning itself in niche markets rather than competing directly with global giants like Michelin and Bridgestone in the passenger car segment.

“We are producing approximately 1.5 million motorcycle tyres annually, with 75 percent supplying the domestic market and 25 percent for export,” states Muhammad Ali Mirza, Head of International Business at

PAKISTAN’S MANUFACTURING SUCCESS STORY

Servis Tyres, Pakistan’s top tyre manufacturer, is expanding globally with a focus on motorcycle, bicycle and agricultural tyres. With a presence in 50+ countries, it drives growth through strategic joint ventures, advanced technology and sustainability. While facing industry challenges, Servis leverages cost advantages and international certifications to stay competitive.

Servis Tyres. Key export destinations include Brazil, South American markets and North African countries including Egypt, Nigeria, Tunisia and Morocco.

The agricultural tyre segment follows a similar strategy, with exports directed to markets including Brazil, Egypt, Syria, Iraq and Afghanistan, though domestic consumption remains the primary focus for this product line.

STRATEGIC EXPANSION AND JOINT VENTURES

A significant milestone occurred in 2023 when Servis formed a joint venture with China’s Long March to establish Pakistan’s first truck bus radial (TBR) tyre manufacturing facility. This partnership marked a crucial development for Pakistan’s industrial base, bringing advanced technology and increased production capacity.

The ownership structure highlights Servis Group’s ambition and negotiating power. “We are the majority stakeholder at 51 percent, while Long March holds around 45 percent” explains Mirza. “They provide the technology, and we handle production.”

This rapid scaling demonstrates the company’s execution capability. “We started our TBR plant with 800,000 tyres per year in 2023. After one year, we expanded to 1.5 million tyres annually, and by the end of 2025, we will reach 2.4 million tyres per year,” Mirza states. The company has already captured most of Pakistan’s TBR replacement market while establishing export channels to Brazil and South America.

QUALITY STANDARDS AND INTL CERTIFICATION

For a tyre manufacturer with global ambitions, meeting stringent international quality and safety standards is essential. Servis has invested heavily in this area, obtaining certifications including DOT (US Department of Transportation), INMETRO (Brazil), E-marks (Europe) and various ISO certifications (9001, 14001, 17025).

“We have the only laboratory in Pakistan accredited to European standards,” Mirza notes. “We produce our lab reports internally, and they are valid throughout Europe.” This testing infrastructure provides a crucial competitive advantage, allowing the company to validate products for international markets without relying on external verification.

MARKET OPPORTUNITIES AND FUTURE GROWTH

The company has identified Pakistan’s passenger car radial (PCR) tyre segment as its next potential growth area. Currently, no domestic manufacturer fully serves this market, with General Tyre producing only for original equipment manufacturers and replacement needs met primarily through Chinese imports.

“Now we believe the market is large enough to initiate a PCR production facility,” Mirza reveals. “The shifting global trade environment may accelerate this development. Because of increasing tariffs in the US, it’s become very attractive for Chinese manufacturers to broaden their scope for international markets, creating potential partnership opportunities.”

Pakistan’s automobile market is evolving beyond its traditional dominance by Japanese brands (Toyota, Honda and Suzuki). Recent government policy changes have created openings for new entrants including Hyundai, Kia, MG, Haval Motors and Cherry Group, all establishing assembly plants in Pakistan. This diversification creates new opportunities for domestic tyre suppliers.

SUSTAINABILITY INITIATIVES

Servis has implemented several environmental sustainability measures in line with global industry practices. “Approximately 40 percent of our electricity consumption now comes from solar energy,” Mirza states. The company also maintains stringent facility management protocols, with international customers frequently commenting on the cleanliness of their manufacturing facilities compared to industry norms.

INDUSTRY CHALLENGES AND COMPETITIVE LANDSCAPE

Despite its success, Servis faces significant challenges. “The major challenge is that the industry is still considered a commodity business,” Mirza explains, necessitating continuous cost reduction and efficiency improvements. Competition from China and other countries remains intense, with both countries’ manufacturers increasing product quality while maintaining aggressive pricing.

Raw material sourcing presents another challenge, as most natural rubber must be imported. This dependency creates both cost and supply chain vulnerabilities, requiring sophisticated procurement strategies.

The company leverages Pakistan’s competitive advantages to maintain profitability. “The labour cost in Pakistan is the cheapest in the whole region,” Mirza points out. “We benefit from that alongside economies of scale, maximising our internal efficiencies.”

Government support also helps offset some disadvantages through export incentives, subsidised electricity, preferential financing schemes and duty drawbacks on imported raw materials. The government’s attention to the sector reflects its growth potential. “Right now, the tyre business is growing at around a 40 percent aggregate rate for exports,” Mirza notes.

CORPORATE STRUCTURE AND SOCIAL RESPONSIBILITY

Servis Tyres operates within the larger Servis Group, one of Pakistan’s top 15 business conglomerates, with origins in footwear manufacturing. “Tyres contribute approximately 60 percent of the business, with footwear representing 35 percent,” Mirza states. “The group’s financial strength provides crucial advantages. The financing we generate comes primarily from internal sources, with minimal bank investment.”

Beyond business operations, Servis Group maintains strong corporate social responsibility programmes. “We operate hospitals, schools and medical colleges that provide 90 percent free education to deserving students, and hospitalisation also is free for them,” Mirza explains.

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Epsilon Carbon Pvt. Ltd. has announced the appointment of Munish Kumar Rathi as its new President and Business Head for Carbon Black.

With more than 25 years of extensive global leadership experience, Rathi brings a strong background in profit and loss management, multi-site manufacturing leadership, strategic planning and business transformation. His career is marked by a demonstrated ability to drive operational excellence and foster sustainable growth across various international markets.

The company is anticipating that his leadership will play a key role as Epsilon Carbon continues to expand its global footprint and accelerate innovation within the carbon black business segment. The organisation has formally welcomed Rathi to the team, expressing confidence in his capacity to guide future strategic initiatives. This move underscores Epsilon Carbon’s commitment to strengthening its leadership team in pursuit of long-term global competitiveness.

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TVS Srichakra has approved capital investment of up to INR 2.2 billion to expand production capacity at its manufacturing facilities in Vellaripatti, Madurai.

The expansion will cover the company’s two-wheeler tyre and off-highway tyre plants, with investment of up to INR 1.1 billion allocated to each facility.

TVS Srichakra said the two-wheeler tyre plant currently has capacity of about 21 million to 23.5  million tyres a year and operates at utilisation levels of around 80 to 85 percent. The company plans to add about 5 percent capacity, with completion targeted in the first half of FY2028-29.

The off-highway tyre plant has existing capacity of about 75 to 85 metric tonnes a year and operates at utilisation levels of 75 to 80 percent. TVS Srichakra plans to increase capacity at the plant by about 25 percent, with the addition scheduled for the first half of FY2027-28.

The company said the investment would be financed through a combination of internal accruals and debt.

TVS Srichakra said the expansion is intended to meet growing demand for its two- and three-wheeler tyres and off-highway tyre products.

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JK Tyre & Industries reported record consolidated revenue of INR 163.84 billion for FY26, registering an 11 percent year-on-year increase, supported by strong domestic demand and volume growth across key tyre segments.

The company’s consolidated EBITDA rose 25 percent to INR 20.89 billion, with EBITDA margin improving to 12.8 percent.

Profit before tax increased 46 percent to INR 10.43 billion, while profit after tax climbed 52 percent to INR 8.60 billion during FY26.

For the fourth quarter, consolidated revenue rose 12 percent year-on-year to INR 42.33 billion.

Quarterly EBITDA surged 42 percent to INR 5.46 billion, with margin at 12.9 percent, while Q4 PAT nearly doubled, rising 94 percent to INR 1.99 billion.

Chairman and Managing Director Dr Raghupati Singhania described FY26 as a year of robust performance, highlighting record volumes in both truck and bus radial and passenger car radial categories.

Domestic sales volumes during Q4 grew 21 percent overall. Truck and bus radial replacement volumes increased 53 per cent, while OEM demand in the segment rose 23 percent. Passenger car radial replacement volumes were up 26 percent and OEM demand increased 10 percent.

The company said growth momentum was expected to continue into FY27, supported by new vehicle launches, infrastructure development and sustained replacement demand.

JK Tyre also highlighted strong traction in electric mobility. More than 70 per cent of electric buses operating in India currently run on its tyres, while the company supplies EV tyres to nearly eight two-wheeler OEMs and has secured orders for electric passenger vehicle models including Renault Duster EV, Hyundai Creta EV and Tata Motors’ Nexon and Punch EV variants.

Its Mexico business, operated through JK Tornel, contributed nearly 20 per cent of consolidated revenue and is expected to maintain growth across Mexican, Latin American and US markets.

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The U.S. Tire Manufacturers Association (USTMA) has elected David Cichocki, Managing Director, Americas, and chief sales officer, Americas Consumer, at The Goodyear Tire & Rubber Company, to its board of directors.

“I’m pleased to welcome David to our Board. His extensive experience and expertise across the tire and consumer goods industries will be invaluable as we navigate today’s complex industry,” said Anne Forristall Luke, USTMA president and chief executive. “His proven leadership will strengthen our ability to seize emerging opportunities.”

Cichocki joined Goodyear in early 2026 and is responsible for overseeing the Americas region and leading the company’s Americas Consumer sales business.

He brings more than 30 years of leadership experience across industrial and consumer goods companies to the USTMA board.

Before joining Goodyear, Cichocki served as senior vice-president of US sales at Whirlpool, where he managed a portfolio valued at more than $10bn across retail and direct-to-consumer channels.

He also spent more than 20 years at Kraft Foods and Nabisco in a range of senior leadership roles.

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