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.

Hana Technologies, Inc. (Hana RFID) has strengthened its leadership in the Asian market with the appointment of industry veteran Jason Chang as Sales Director for Asia. Based in Shanghai, he will be responsible for managing key customer relationships and driving strategic growth throughout the region.

Chang brings a wealth of relevant experience to the role, with over 15 years in the RFID sector following a successful career in IT. His proven track record includes significant tenures at leading firms like Xerafy, Stora Enso and Beontag. His accomplishments range from pioneering the development of innovative flexible anti-metal tags to launching groundbreaking RFID-based retail solutions that gained widespread adoption in China and Europe. He has also demonstrated a strong capacity for growth, most recently achieving remarkable business expansion in the APAC market.

This appointment is a strategic milestone for Hana RFID, underscoring its commitment to supporting global customers with high-performance technology and expert, on-the-ground leadership. This move highlights Hana RFID's focused strategy on deepening its regional support and providing partners with sophisticated RAIN RFID inlay and embeddable tag solutions, backed by local expertise.

Mike Hetric, Senior Vice President – Sales & Marketing, Hana RFID, said, “The appointment of Jason Chang is a significant step forward in improving local availability and supporting our key partners in Asia. Jason’s track record in driving innovation, his deep market knowledge and his commitment to customer success will be invaluable as we expand our footprint in this dynamic region.”

Chang said, “I’m excited to be part of the Hana RFID team, which is recognised in the market as both a key player and a trusted partner for an ever-growing network of label converters, service bureaus and system integrators. I look forward to working alongside our partners in Asia to deliver innovative solutions and exceptional service.”

Ralson Tire North America (RTNA) has expanded its leadership team with the appointment of two seasoned tyre industry professionals.

As per the new development, Billy Dorsey Jr has been appointed as Vice President of Sales – South and Jamie McSwaney has been appointed as Vice President of Sales – North. Both the new appointments bring a combined 45 years of tyre industry experience to the company.

Brian Sheehey, President, RTNA, said, “These additions signal our unwavering commitment to accelerating Ralson’s growth in the US and Canada. We’re building a leadership team that knows how to compete, win and deliver results. Their deep industry relationships and ability to execute will be instrumental as we continue to grow our footprint in the North American trucking industry.”

Scandinavian tyre service provider Citira sees robust potential for premium tyres in the Nordic region, driven by seasonal demands and safety priorities. CEO David Boman highlights that premium tyres including Pirelli’s offerings hold a significant share in passenger car, light truck and truck tyre segments supported by harsh winter conditions that emphasise performance and reliability. Despite a slight recent decline amid broader economic pressures and rising price sensitivity, premium brands remain relevant. Citira’s new long-term partnership with Pirelli and acquisition of Dackia AB aims to consolidate and optimise premium tyre distribution across Sweden.

Scandinavian tyre service company Citira recently told Tyre Trends that Nordic countries have excellent potential for premium tyres during a discussion over its partnership with Italian tyre major Pirelli.

Speaking on the market potential, Chief Executive Officer David Boman said, “When it comes to the Nordic markets, Scandinavia in particular has a relatively high share of premium tyres across categories including passenger car, light truck and TBR segments. Compared to other global regions, the demand for premium tyres here is notably strong.

“One of the main reasons for this is the seasonal nature of our market. Winter tyres, in particular, drive a more premium-oriented approach because of the need for high performance and safety under harsh conditions. While we’ve observed a slight decline in the premium tyre share over the past few years, it still holds a significant portion of the market. This demand is closely tied to seasonal safety concerns, especially in winter, autumn and early spring. Drivers here prioritise safety and reliability, which naturally supports the continued relevance of premium brands like Pirelli.”

He noted that the decline is likely tied to broader financial challenges in the market, especially following the Covid period. Both consumers and companies have become more price-sensitive, making cost a bigger factor in purchase decisions.

As a result, there’s been a gradual increase in demand for lower-cost, imported non-European tyre brands, while the market share of European premium tyre brands has slightly decreased.

Pirelli and Citira have entered a long-term strategic partnership aimed at enhancing their market presence in Sweden. As part of the deal, Citira will acquire Dackia AB that has a network of 102 retail outlets from Pirelli.

In return, Pirelli and Dackia have signed a supply agreement extending to 2030, ensuring Pirelli remains the main tyre supplier. The transaction, pending regulatory approval, is expected to close by 2025. The partnership will boost Pirelli’s distribution and market coverage while supporting Citira’s goal of expanding a sustainable, flexible and high-quality customer service network.

THE PACT

Citira currently runs over 50 tyre shops and over five retreading units across Scandinavia and Poland. “Citira is actively working towards creating a more efficient and consolidated tyre market. While our current focus is primarily on the Scandinavian region, it’s not out of the question that we may consider expanding beyond this geographic perimeter in the future. This agreement is part of a broader industry trend where partnerships and acquisitions are used to enhance efficiency, strengthen distribution networks and provide end customers with better service coverage,” revealed Boman.

Nonetheless, the deal specifically pertains to the Swedish market, and as part of the regulatory process, Citira has conducted a market analysis to understand the potential implications on market share. However, the specifics of that study were said to be confidential and could not be disclosed prior to the official closing of the deal.

Explaining how this partnership will influence the supply chain of premium tyre in the Nordics, Boman said, “We do anticipate some changes, particularly within Citira. We operate a number of logistics centres, and this partnership presents an opportunity to optimise our overall supply chain setup. Enhancing logistics will be a key enabler of better service and responsiveness in premium tyre distribution.”

He added, “This particular deal is unlikely to have a direct or immediate impact on independent retailers or smaller distributors. More broadly, the Scandinavian tyre retail sector is undergoing consolidation. Several players are actively reshaping the competitive landscape and that trend could gradually influence the positioning of independents. But again, this specific acquisition is not a disruptive event in that context.”

Alluding to the current demand for replacement tyres, he said, “In general, the tyre market has proven to be quite non-cyclical. Even in challenging economic conditions, it tends to remain stable. That said, I believe we’re entering a phase where circularity and life-extension solutions will gain more momentum. We’re likely to see increased focus on services that extend tyre life, especially for larger fleets. This shift won’t just be driven by cost or fleet uptime concerns but increasingly by environmental responsibilities.”

THE BUSINESS

According to Boman, Pirelli represents a very minimal share of Citira’s overall sales, currently. However, the strategic partnership mainly revolves around Dackia and Pirelli, and the former is intended to become part of the Citira Group. “Moving forward, there is definitely an opportunity to deepen the collaboration with Pirelli and potentially grow their share within our overall brand mix,” added Boman.

Citira currently follows a multi-brand strategy and will continue with it even after closing of the deal. Besides, it is also involved in process and sales of retreaded TBR tyres and wheel rims.

“We operate a facility in Poland where we refurbish truck and bus rims. The process involves media blasting and repainting the rims to restore its appearance and functionality. The logic behind it is quite similar to retreading. In most cases, the structural integrity of the rim is still intact; it’s just the surface or aesthetics that degrade over time. By restoring these rims, we’re able to extend the life and reduce waste,” said Boman.

The company operates five retreading facilities collectively, located in Finland, Sweden and Poland. It uses both hot-cure and cold-cure retreading methods. Hot-cure is used in Poland and cold retreading in Finland and Sweden. Annually, it retreads around 160,000 tyres, averaging about 13,000 per month. While its current focus is on retreading, Citira is actively exploring expansion into tyre recycling as part of a broader push towards sustainability and circularity.

The company also manages tyre distribution for fleets across countries. Its circular tyre distribution approach involves not only delivering new tyres to customers but also collecting used tyre casings from them. These casings are then sent back to its retreading facilities, creating a closed-loop system. Besides, Citira has different suppliers across Europe for sourcing tyres for retreading.

MARKET WATCH

Citira sees a strong willingness in the market for consolidation and it has already engaged in several partnerships. Commenting on market challenges, Boman said, “One key challenge is the need for a player capable of driving consolidation at a larger scale. In the Scandinavian markets, this kind of brand-independent consolidation hasn’t really taken place over the last 10 to 15 years. Previously, consolidation efforts were primarily led by tyre manufacturers or affiliate networks players. However, consolidation has largely been on hold recently, leaving space for an independent actor to step in. We see that opportunity clearly and believe it is well received both by other market participants and customers. The challenge lies in successfully executing this consolidation while maintaining trust and delivering value across a diverse market.”

Commenting on the demand for retreading, he said, “The Scandinavian market has a long tradition of retreading heavy vehicle tyres. Currently, there is a growing shift towards pay-per-kilometre or tyre-as-a-service models, especially among large fleets like bus companies and hauliers. Notably, public tenders increasingly require a certain share of retreaded tyres, reflecting a strong environmental focus. Retreading extends the life of a tyre by reusing about 70 percent of its original material, making it a significant sustainability tool. The market share of retreaded tyres is gradually increasing with expectations that the retread market will grow faster than the new tyre market in the coming years.”

“The main challenges for the retreading industry lie in overcoming the longstanding perception that retreaded tyres are merely a low-cost option rather than an environmentally friendly and sustainable product. This is mostly prevalent is Scandinavia and it is crucial to shift this mindset by educating customers and the broader market about the true benefits of retreading. Moving away from a purely price-driven sales approach to one that highlights quality, durability and positive environmental impact remains a significant hurdle for the industry,” he added.

MRF reported a 12 percent decline in first-quarter consolidated net profit as rising input costs offset a 7percent  increase in total income.

Consolidated net profit fell to INR 5 billion for the quarter ended 30 June from INR 5.7 billion a year earlier, the Chennai-based company said in a statement. Total income rose to INR 70.82 billion from INR 72.80 billion in the same period last year.

Profit before tax dropped to INR 6.7 billion from INR 7.6 billion year-on-year, with the company booking a tax provision of INR 1.7 billion for the quarter.

“Despite the increase in total income, profits for the quarter ended 30 June 2025 declined due to an increase in input costs,” MRF said in its press release.

The results come amid challenging market conditions that weighed on demand. “April 2025 started with a tariff issue, which was followed by a war in May and then early monsoons. This led to subdued market sentiments,” the company said.

Original equipment (OE) vehicle sales across most categories were either negative or flat, except for the farm segment, which remained unaffected by the disruptions, MRF noted.

Despite the headwinds, the company posted nine percent quarter-on-quarter growth in total income compared to the previous three-month period.