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.

Comments (0)

ADD COMMENT

Link Copied!

French group targets fast-growing SUV segment with INR 6.86 billion

Michelin has produced its first premium passenger car tyre in India, marking a strategic shift for the French manufacturer’s Chennai facility, which previously focused exclusively on commercial vehicle production.

The plant unveiled the made-in-India passenger tyres on Tuesday, with commercial availability planned for the first half of 2026. The company will target the premium segment with products ranging from 16 to 22 inches, including its Primacy 5 range as the initial offering.

Michelin will manufacture its LTX Trail ST, Pilot Sport 4 SUV, Pilot Sport 5, and Primacy 5 ranges in India.

The move follows Michelin’s September 2024 announcement of an INR5.64 billion investment in passenger car tyre manufacturing. The group has since added over INR 1 billion for subsequent phases, bringing total investment to INR 6.86 billion, supplementing the INR 28 billion already deployed at the Chennai site.

India’s passenger car market, valued at USD 18.13 billion in 2024, is projected to reach USD 33.85 billion by 2030, representing a compound annual growth rate of approximately 11 percent. Sport utility vehicles now account for more than half the market, a trend that Michelin is positioning itself to capitalise on.

“Better infrastructure, rising disposable income, changing consumer preference of the growing Indian middle class’s desire for more versatile, spacious, and feature-rich vehicles are fuelling growth and premiumisation of the car park,” the company said in a statement.

Michelin scaled production in 12 months from announcement to first output, including 50,000 hours of employee training at various Michelin factories overseas. The new passenger car line spans 22,000 square metres and incorporates what the company describes as “Industry 5.0” automation.

The facility requires only 200 employees, compared to the industry standard of 500 for comparable capacity, according to Michelin. The Chennai plant already produces 38 tyre variants for trucks, buses and defence applications, with all business-to-business products fitted with radio-frequency identification tags.

Michelin has expanded its retail presence to 75 standalone service centres across India and opened what it terms an “experience store” in Nashik. The company plans to expand this network as production increases.

The Chennai facility operates with a zero carbon footprint, zero liquid discharge, and complete recycling, sourcing 80 per cent of its water from rainwater harvesting while drawing 45 per cent of its energy from renewable sources.

The company, which employs 129,800 people across 175 countries, positions itself as a “world-leading manufacturer of life-changing composites” with operations spanning mobility, construction, aeronautics and healthcare sectors.

Comments (0)

ADD COMMENT

Link Copied!

In a strategic move to bolster its position in the United States, Balkrishna Industries Ltd. (BKT Tires) has announced two key executive appointments for its American operations. The company has named Jay Dhillon as the President of BKT USA and appointed Minoo Mehta as a Senior Advisor.

With more than two decades of international experience in the tyre sector, Dhillon will be responsible for leading the Ohio-based subsidiary. His mandate is to drive long-term growth by expanding into new and existing markets, aligning all business units with strategic objectives and cultivating profitable partnerships to ensure sustainable industry leadership.

Mehta, taking charge from 1 October 2025, will focus specifically on the truck and bus radial tyre segment, providing expertise to support the development and launch of new product lines. This dual appointment is designed to strengthen the company's overall strategy and market presence across its key off-highway and radial tyre businesses in the US.

Dhillon said, “I am excited to join the BKT team and contribute to its forward-looking growth. With over 20 years in the tyre industry and an engineering background, my goal is to lead the team and drive success during this dynamic time while upholding the company’s commitment to quality, innovation and excellence.”

Comments (0)

ADD COMMENT

Link Copied!

Mumbai-based Balkrishna Industries (BKT), a major player in the global Off-Highway Tyre (OHT) market, is making a significant move to expand its footprint in the on-road vehicle tyre segment with the inauguration of a new ‘Vehicle Dynamics & Testing’ (VD&T) base at the National Automotive Test Tracks (NATRAX) facility in Indore.

The new base leverages India's premier automotive testing grounds – Asia's second-largest and longest – to enhance BKT’s product development, particularly across the two-wheeler, passenger car radial (PCR) and commercial vehicle radial segments.

BKT's strategic decision to establish the VD&T base, inaugurated by Satish Sharma, Sr President & Director - Business Development and Strategy, marks a major step in the company's commitment to enter new segments.

By tapping into NATRAX's state-of-the-art infrastructure, BKT aims to accelerate new product development, enhance performance & reliability and address evolving needs by utilising real-world testing scenarios to cater to the specific demands of Indian and international consumers.

The facility is equipped with advanced machinery and an expert R&D team, providing a critical hub for high-quality, innovative tyre development across all mobility segments.

Access to NATRAX will enable BKT to test its tyres across a comprehensive range of real-world driving conditions and parameters, including – ride & handling, comfort, braking performance, durability and off-road terrain simulation.

These robust testing capabilities are crucial for meeting the requirements of both Original Equipment Manufacturers (OEMs) and the replacement market. The goal is to ensure that every tyre offers world-class quality and gives everyday consumers confidence in its performance.

By investing in dedicated R&D at NATRAX, BKT is not only reinforcing its position in the global tyre industry but is also signalling its serious intent to become a formidable competitor in the rapidly growing on-road vehicle tyre market.

Satish Sharma, said, “At BKT, we are leveraging our decades of expertise in off-highway tyres as we expand into on-road vehicle segment. Our entry into the consumer space is guided by a clear commitment: developing tyres that users can trust for safety, comfort, mileage and reliability on every journey. The establishment of dedicated VD&T base at NATRAX marks a pivotal step in our journey to deliver world-class tyres across segments. This facility empowers us to simulate real-world conditions and rigorously test our products for performance, safety and durability. By addressing key consumer pain point, be it ride comfort, braking efficiency, or terrain adaptability; we are committed to engineering solutions that truly elevate the driving experience.”

Comments (0)

ADD COMMENT

Link Copied!

Continental AG’s Supervisory Board is experiencing a significant transformation in the wake of its Aumovio spin-off. This restructuring involves several high-profile departures and new appointments. Stefan E Buchner resigned on 4 September 2025 to assume the role of Chairman of the Supervisory Board at the newly independent Aumovio SE. Shortly thereafter, on 17 September, Dr Gunter Dunkel also stepped down.

The most significant new appointment is that of Sabrina Soussan, who is slated to join as a shareholder representative. Subject to her anticipated formal appointment by the local court at the end of September 2025, Soussan will then be nominated for election at the Annual Shareholders’ Meeting on 30 April 2026. Following that meeting, the Supervisory Board is expected to elect her as its new Chairperson. She will succeed the long-serving Prof Wolfgang Reitzle, who is scheduled to conclude his 16-year tenure at the close of the 2026 meeting.

Soussan is a German-French executive with over 25 years of experience in the automotive and transport sectors. Her extensive background includes leadership roles such as CEO of Siemens Mobility, senior positions at Siemens VDO and Continental, and most recently, serving as CEO and Chair of the French SUEZ Group. She also holds a position on the Shareholders’ Committee at Henkel.

Substantial changes are also occurring among the employee representatives. Petra Hartwig, Sabine Kühn, Michael Linnartz and Nicole Werner have been nominated for appointment, which is also expected to be finalised by the court in late September. Their appointments follow the resignations of several individuals, including Christiane Benner and Dr Matthias Ebenau, who stepped down because their roles at IG Metall no longer encompass responsibility for Continental. Furthermore, the employee representatives from the spun-off automotive business have also departed.

Assuming all anticipated court appointments proceed, the reconstituted Supervisory Board will comprise a blend of continuing and new members, including Prof Reitzle until his departure, and the newly appointed representatives.

Wolfgang Reitzle, Chairman of the Continental Supervisory Board, said, “Following the successful spin-off of Aumovio, we are now paving the way for an orderly succession. In Sabrina Soussan, the Nomination Committee has secured a highly qualified candidate for this role. I look forward to working with her and the other new Supervisory Board members. I would also like to thank the departing members for their commitment during this intense phase of transformation and for many years of trusted collaboration on the board.”

Soussan said, “Being nominated to the Continental Supervisory Board is a great honour for me. I look forward to becoming part of this outstanding team and supporting the Executive Board in implementing its strategy.”

Comments (0)

ADD COMMENT

Link Copied!