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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InnoVent Technology LLC has appointed Jose Rodriguez as its new Chief Technology Officer. He brings three decades of extensive experience in industrial digital systems, automation and simulation platforms to the role.

Rodriguez was most recently the Global Technical Authority at Wood Group, a multi-billion-dollar engineering firm, and previously served as CTO of Ingenious Inc., prior to its acquisition by Wood. In his new position, he will direct a global team focused on advancing the company's InnoSIM digital twin platform.

His leadership will be central to integrating commercial AI and automation systems, significantly boosting predictive modelling capabilities and deploying digital twin projects on an international scale. The appointment underscores InnoVent's strategic commitment to leading the industry through cutting-edge technological innovation and advanced digital solutions.

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Indian off-highway tyre maker maintains top supplier status in global recognition programme

Balkrishna Industries Ltd (BKT), one of the world’s leading off-highway tyre manufacturers, has secured the “Excellence Level” certification for the fourth consecutive year under Caterpillar’s Supplier Excellence Recognition (SER) programme, the Indian company said on Wednesday.

The recognition from the American heavy machinery giant underscores BKT’s sustained performance across quality metrics and delivery standards, reinforcing its position as a key supplier in the construction and mining equipment sector.

BKT’s partnership with Caterpillar dates back to 2015, when it began supplying tyres for the Indian market. The relationship has since expanded, with BKT now providing off-highway tyres for Caterpillar equipment ranging from 40 to 190 tonnes across various markets.

The Mumbai-based company’s certification journey began in 2017 with a Silver Level rating, followed by progressive improvements to Gold and Platinum levels before achieving the Excellence distinction in 2022.

Caterpillar’s SER programme evaluates suppliers across multiple criteria, including product quality, on-time delivery performance, technical support capabilities and operational feedback from field deployments.

“We are truly honoured to receive the Caterpillar Excellence Supplier Award. This recognition reflects our unwavering commitment to quality, innovation, and customer satisfaction,” said Ludovic Revel, President Global OEM at BKT. “It is a testament to the dedication of our entire team and the long-standing business relationship with Caterpillar.”

The Excellence Level represents the highest tier in Caterpillar’s supplier assessment framework, reserved for partners demonstrating consistent performance and reliability across operational metrics.

BKT has distinguished itself through comprehensive customer support, including proactive communication channels and technical on-site assistance, according to the company statement.

“We are proud to share our global ambitions: to deliver excellence, sustainability, and performance at every corner of the world. We look forward to carrying on our support for Caterpillar’s success with the same passion and reliability that distinguish BKT Tyres,” Revel added.

The recognition comes as global demand for construction and mining equipment remains robust, driven by infrastructure development and commodity extraction activities worldwide.

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Michelin Connected Fleet North America has named Willem Moore as its new Chief Executive Officer. Having been with the parent company since 2019, Moore brings considerable leadership expertise from the technology and mobility sectors. In his new role, he will steer the company's mission to provide advanced fleet management solutions that enhance customer efficiency, safety and sustainability.

“Willem brings an extensive leadership experience in the technology and mobility arenas and will guide our mission to deliver innovative fleet management solutions that drive efficiency, safety and sustainability for our customers. His leadership will help us accelerate innovation while continuing to put our people, customers and partners at the centre of everything we do,” expressed the company.

Moore said, “At Michelin Connected Fleet, we help fleet customers unlock the power of data to accelerate their transformation. Thanks to connected technologies, real-time insights and personalised support. Because we go beyond tools by partnering with our customers. Our end-to-end approach combines smart hardware, advanced analytics and the strength of Michelin’s 130+ years of innovation and trust. I’m honoured to lead such a talented and passionate team across North America and to continue building strong, trusted relationships with our customers and partners. Together, let’s keep moving mobility forward!”

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Indian tyre manufacturer Tolins Tyres Ltd launched heavy-duty tractor rear tyres, completing its agricultural tyre portfolio as the company seeks to capitalise on India’s farming sector ahead of the harvest season.

The Kerala-based firm, which already produces tractor-trailer tyres, front tyres and tiller tyres, said the new product would enable it to offer farmers a complete tyre solution for tractors whilst opening fresh revenue streams in the agricultural market.

India’s agriculture sector, which employs nearly half the country’s workforce, is preparing for the upcoming harvest season that typically begins in late September. Tractor sales have remained robust in recent months as farmers invest in mechanisation to boost productivity.

Tolins plans to distribute the new rear tyres through its network of more than 1,200 dealers across India, ensuring availability during the critical farming period.

"The launch of our tractor rear tyres is a significant milestone as it completes our tractor tyre range, enabling us to serve farmers with a comprehensive solution," said Dr KV Tolin, promoter, chairman and managing director of Tolins Tyres.

"Agriculture remains at the heart of India's economy, and we are committed to supporting farmers with durable, high-performance products that enhance efficiency and reliability in the field. Backed by our strong dealer network of over 1,200 partners, this new offering will not only support farmers during the upcoming harvest season but also strengthen Tolins' position in the agricultural segment whilst opening new avenues of growth for the company."

The company said the timing of the launch would allow farmers to prepare their machinery ahead of the 2025 harvest season.

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