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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Nokian Tyres has announced the promotion of Tiina Frazer to Senior Vice President of Brand, Marketing and Communications, effective 1 August 2026. In addition to her new executive role, she will join the company’s Management Team, operating from the headquarters in Helsinki, Finland, and reporting directly to President and CEO Paolo Pompei.

Frazer originally joined the Finnish tyre manufacturer in September 2025 as Vice President for the same functional area. Her professional background includes a tenure as Vice President of Brands and Marketing at HKFoods Finland Oy, along with prior senior leadership roles at Lumene, Roche Pharmaceuticals and Fiskars, bringing extensive cross-industry experience to her expanded responsibilities.

Paolo Pompei, President and CEO, Nokian Tyres, said, “I am delighted to welcome Tiina to the Nokian Tyres Management Team. Her experience in building impactful brands make her an excellent addition to our team as we continue to strengthen our premium position in our key markets.”

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Fornnax Technology has taken a decisive step to strengthen its European footprint by formalising a service partnership with industry veteran Lukas Baur of NOBA Maschinenservice. The agreement, ratified by company CEO Jignesh Kundaria, transitions the Indian manufacturer’s support model from remote coordination to an on-the-ground operational presence. This strategic alignment is designed to address the growing demand for immediate technical intervention across the continent’s recycling sector.

Based in Worbis, Germany, Baur commands a fully integrated service infrastructure that includes a 1,000-square-metre workshop fitted with a 5-tonne crane system, a dedicated hydraulic bay and specialised tooling for bearing replacements. His mobile response unit comprises 12 Mercedes Sprinter vans and a workforce of 24 certified technicians, enabling rapid deployment across a 1,000-kilometre radius. This setup guarantees that Fornnax customers can expect emergency assistance within 24 hours of a service call.

Baur’s professional history spans over 20 years of hands-on work with prominent shredder brands such as Eldan, Lindner and Vecoplan, giving him intimate knowledge of the operational challenges faced by European plant operators. His decision to join forces with Fornnax was driven by the manufacturer’s distinctive combination of competitive pricing, rugged construction and advanced wear-resistant engineering. He recognised that the current market turbulence – marked by tight margins, postponed capital expenditures and a dwindling labour pool – demanded a partnership capable of delivering both technical depth and logistical speed.

Under the new arrangement, Baur assumes full responsibility for the entire equipment lifecycle, covering system commissioning, scheduled upkeep, urgent breakdown recovery and the supply of mechanical, hydraulic and electrical components. He has also expressed a long-term vision to transform his Worbis facility into a regional spare parts consolidation centre, particularly if Fornnax opts to stock inventory at that location. To match anticipated growth, he plans to augment his fleet and technician count by two to three units annually.

This collaboration signals Fornnax’s broader commitment to building a dedicated European service network rather than relying on generalized support structures. With Baur’s proven capabilities now formally integrated, the company aims to deliver faster resolution times and technically nuanced assistance that aligns with the high-throughput demands of modern recycling operations. The partnership ultimately positions Fornnax as a formidable contender in the European shredding equipment landscape, with service excellence as its cornerstone.

Jignesh Kundaria, Director and CEO, Fornnax, said, "We strongly believe that by continuously improving our service quality and customer satisfaction index, we can build long-term relationships with our customers. Higher customer satisfaction leads to greater trust, which significantly increases repeat orders and ultimately drives sustained growth in our sales revenue."

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Apollo Tyres is accelerating investments in manufacturing technology, artificial intelligence and international expansion as the company seeks to strengthen its position in premium tyre markets while expanding its global production footprint.

The tyre maker said its long-term strategy, branded Momentum 2.0, is centred on financial discipline, product premiumisation, manufacturing expansion and sustainability, following a year in which it outperformed the industry across several segments and delivered strong international revenue growth.

The company has reinforced its global manufacturing network, operating six manufacturing facilities across India and Hungary and two global R&D centres in Chennai and the Netherlands. Its products are now sold in more than 100 countries, supported by continued investments in research, development and an expanding global distribution network.

Apollo is also increasing investment in digital manufacturing, describing technology as a key driver of future competitiveness. During FY26, the company rolled out its Advanced Manufacturing Execution System (AMES) across major manufacturing plants, enabling real-time production monitoring, end-to-end traceability and greater integration between factory operations and enterprise systems.

To accelerate digital transformation, Apollo established a dedicated AI Innovation Unit that is developing artificial intelligence and machine-learning applications for manufacturing, engineering and business operations. The company said generative AI and agentic AI assistants are being deployed to improve simulations, operational planning and enterprise-wide decision-making, positioning AI as a core element of future factory operations.

Research and development remains another strategic investment priority. Apollo said it invested INR 460.87 million in R&D during FY26 while establishing advanced DoJo Centres at its Chennai and Andhra Pradesh facilities to strengthen engineering capabilities and accelerate product innovation.

International manufacturing continues to underpin Apollo's export ambitions. The company's Gyöngyöshalász plant in Hungary has become a strategic hub for serving European markets, allowing Apollo to manufacture closer to customers while strengthening supply-chain resilience amid evolving global trade dynamics.

Management said Europe remains a key growth market, particularly in premium passenger car tyres, while North America offers opportunities through higher-value products. During the year, Apollo expanded its dealer network by adding more than 250 dealers across the United States and Canada, strengthening distribution for the Vredestein brand and improving access to replacement markets.

Despite ongoing geopolitical uncertainty, energy price volatility and changing trade policies, Apollo said it would continue investing in innovation, operational efficiency and manufacturing excellence rather than slowing capital deployment.

Looking ahead, the company said it will maintain a disciplined capital allocation strategy while continuing investments in product innovation, brand building, manufacturing efficiency and digital transformation, with a strong focus on improving return on capital employed and supporting sustainable long-term growth in both domestic and export markets.

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CEAT will invest about INR 12.05 billion to expand its manufacturing capacity by roughly 53,000 tyres a day over the next five years, as the RPG Group company prepares for sustained demand growth while reporting a weaker first-quarter profit.

The investment, which will be implemented in phases through the end of FY2031, will be financed through a mix of internal accruals and debt. The expansion comes as CEAT's existing manufacturing facilities are operating at around 95 percent capacity utilisation, with the company stating that production at its Nagpur two-wheeler tyre plant is approaching full utilisation. The additional capacity could be created through greenfield and/or brownfield expansion, depending on internal assessments.

The capital expenditure announcement accompanied CEAT's results for the quarter ended June 30, which reflected resilient revenue growth but pressure on profitability.

Standalone revenue from operations rose 18.2 percent year on year to INR 41.63 billion, from INR 35.21 billion a year earlier. However, net profit declined 27.4 percent to INR 980 million, compared with INR1.35 billion in the corresponding quarter last year. Profit before tax fell to INR 1.32 billion from INR 1.81 billion.

Material costs increased sharply to INR 28.80 billion from INR 22.39 billion a year earlier, reflecting continued input cost pressures, while finance costs and depreciation also rose. Total expenses increased to INR 40.46 billion, compared with INR 33.63 billion in the year-earlier period.

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