Cheap Chinese tyres flood Pakistani markets, capture big share

Karachi [Pakistan], April 6 (ANI): Chinese tyres have captured 85 per cent of the market share in Pakistan which is a substantial 45 per cent increase from two years ago.
According to a report published in Dawn, the takeover of the local market share by a Chinese product is not uncanny and is similar to several Made in China products that have flooded local markets.
Earlier, the Chinese car tyres held 40 per cent of the market share in 2018. The share now has since increased to 85 per cent. "In the light truck category tyres, China held a share of 30-40 per cent two years ago which has now gone up to 65-70 per cent," the report said.
Moreover, Beijing also dominates in truck/bus tyres with over 75 per cent market share which was merely 40 per cent two years back.
"Mushroom growth has been noted in the number of dealers who are regularly flooding the market with Chinese tyres," former chairman of the Pakistan Tyre Importers and Dealers Association (PTIDA) Azim K. Yousufzai told Dawn.
The association leader said the low prices were the main reason for the surging market share of Chinese tyres. They are cheaper than European, Korean, Thai and American tyres.
On the smuggling of tyres, Yousufzai said the illegal arrival of different types of tyres has slowed down drastically owing to strict vigil at the border areas.
"Strict monitoring at the borders has brought down informal arrival of tyres from 50-60 pc to 20pc," he claimed.
Over the decrease in sales of Pakistani tyres, the association leader said that the government has reduced the regulatory duty (RD) to 10-20 per cent for various categories of imported tyres which is among the factors encouraging legal imports. (ANI)