Servis Group has announced a major investment of $80 million to establish a passenger car tyre manufacturing facility in Pakistan, marking a significant milestone in the country’s automotive supply chain development and industrial diversification.
Read More: Ecopack PAT Climbs 5% in 1HFY26 Despite Revenue Pressures
The company’s strategic move into tyre production aims to reduce reliance on imports and strengthen domestic manufacturing capabilities. The new facility will focus on producing high-quality tyres for passenger vehicles, addressing a growing demand from consumers and the automotive aftermarket sector. By localising tyre production, Servis Group intends to enhance supply reliability, reduce foreign exchange outflows, and create skilled jobs within the local economy.
As part of its long-term growth strategy, Servis Group will deploy modern manufacturing technologies and processes to ensure that the tyres meet international standards for performance and safety. The investment will include state-of-the-art machinery, quality testing infrastructure, and a dedicated team of engineers and technicians to support production operations.
The passenger car tyre market in Pakistan has traditionally been dominated by imported brands, with limited local production capacity. Servis Group’s entry into this space is expected to stimulate competition, improve pricing dynamics for consumers, and encourage further investments in automotive components manufacturing.
Company executives emphasise that the project will contribute to Pakistan’s industrial base by fostering backward linkages with rubber, steel, and other related sectors. Local suppliers are anticipated to benefit from increased demand for raw materials and services as the tyre plant ramps up production.
The investment also aligns with broader government initiatives to promote import substitution and strengthen the manufacturing ecosystem. By leveraging local talent and production resources, Servis Group aims to position Pakistan as a competitive hub for automotive tyre production within the region.
Production at the new facility is expected to begin in phases, with initial output targeting the domestic market. Over time, the company plans to explore export opportunities to neighbouring countries, further enhancing Pakistan’s footprint in the automotive components industry.
With this strategic investment, Servis Group reinforces its commitment to industrial innovation and economic growth, driving long-term value for stakeholders while supporting the expansion of Pakistan’s manufacturing sector.
