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Tag: Tyres

  • Pakistan Orders 9 Tyre Manufacturers to Install Digital Monitoring by Nov 30

    Pakistan Orders 9 Tyre Manufacturers to Install Digital Monitoring by Nov 30

    Pakistan’s Federal Board of Revenue ordered registered tyre manufacturers on Friday to install electronic production monitoring systems by Nov 30, linking factory machinery directly to state revenue servers to track output in real time.

    The mandate aims to help bridge a national sales tax gap estimated at Rs3.7 trillion between current collections and actual revenue potential.

    Under Sales Tax General Order No. 32 of 2026, initial compliance targets nine companies: Ghandhara Tyre and Rubber Company Ltd, Service Long March Tyres Ltd, Service Tyres (Private) Ltd, Panther Tyres Ltd, Diamond Tyres Ltd, Service Industries Ltd, Ghauri Tyre and Tube (Pvt) Ltd, Crown Tyres Ltd, and United Rubber (Pvt) Ltd. Tyre makers must fit approved tracking hardware and software across every curing press, takeaway conveyor, and finishing line. The equipment counts cured tyres, screens out uncured units, and separates genuine production runs from maintenance, warm-ups, and dry runs. It records each product by diameter, width, tread design, and weight using certified stock keeping unit data.

    Single Vendor System and Factory Rules

    The Federal Board of Revenue selected ISSM Labelling Solutions (Pvt) Ltd as the sole authorised provider to install and run the tracking platform across plants. The system streams production events directly into the central tax control room, automatically flagging unexpected stoppages, machinery breakdowns, interruptions, and any physical or software tampering.

    Manufacturers cannot transport finished tyres off factory grounds unless the output passes through the electronic inspection network. Companies must supply the underlying information technology infrastructure, reliable power, and network connectivity at their own cost, while also paying service fees to the authorised vendor.

    Initial Hit List for Industrial Compliance

    Regulators singled out nine major tyre producers for the initial rollout: Ghandhara Tyre and Rubber Company Ltd, Service Long March Tyres Ltd, Service Tyres (Private) Ltd, Panther Tyres Ltd, Diamond Tyres Ltd, Service Industries Ltd, Ghauri Tyre and Tube (Pvt) Ltd, Crown Tyres Ltd, and United Rubber (Pvt) Ltd. Tax officials noted the list is not final and will expand to every licensed producer in the country.

    For supply chain operators and vehicle assembly partners across South Asia, the measure removes unrecorded factory off-takes that frequently leak into local wholesale distribution. Tyre suppliers operating in Pakistan face immediate capital outlays for hardware integration, alongside tighter inventory audits that leave zero room for off-the-books stock.

    The policy tilts the operating balance toward fully documented parts suppliers while forcing mid-tier producers to absorb compliance costs. Distributors and replacement retailers buying from these plants will see tighter paper trails on all commercial invoices, shrinking informal discounting across aftermarket supply routes.

    Expanding Digital Tax Control

    The tyre sector is the latest consumer goods segment brought under automated plant surveillance. Tax authorities previously placed packaged tea, household electronics, paper and paperboard, edible oils, leather, textile spinning, tiles, packaged milk, fruit juices, bottled water, and carbonated beverages under similar digital recording orders.

    Inland Revenue chief commissioners are now appointing dedicated regional focal persons to inspect factory lines and monitor vendor installations alongside company managers. Regional field formations hold orders to add unlisted tyre factories to the registry and submit formal compliance reports to headquarters.

  • Pakistan Raises Import Duties on Tyres and Motorbike Parts to Protect Local Industry

    Pakistan Raises Import Duties on Tyres and Motorbike Parts to Protect Local Industry

    Pakistan raised additional customs duty on imported tyres and motorcycle components on Thursday. The tariff on certain bike parts climbs to 31 per cent to shelter domestic manufacturers.

    Cabinet members on the Economic Coordination Committee lifted the additional customs duty on locally manufactured radial tyres and motorcycle components from 4 per cent to 11 per cent. Rates on motorbike parts imported by local assemblers surged from 11 per cent to 31 per cent.

    Finance Minister Muhammad Aurangzeb presided over the Islamabad meeting. The committee altered statutory regulatory order SRO 693(I)/2006 on the recommendation of the Revenue Division. These tariff hikes follow the first quarter of the fiscal year and coincide with a staff-level agreement with the International Monetary Fund.

    Higher tariffs on tyres and motorcycle components

    Imported parts that compete with local suppliers face direct penalties under the new structure. Components brought in by vehicle assemblers take the steepest hit, jumping 20 percentage points to 31 per cent. Finished radial tyres and replacement parts now carry an 11 per cent levy.

    Revenue Division documents confirm the amendment to SRO 693(I)/2006 targets imports where domestic manufacturing capacity already exists. Officials structured the differential to push assemblers toward local supply contracts over foreign procurement.

    Vehicle assemblers across the country have long relied on imported knock-down kits from China, Japan and Southeast Asia. The wider tariff gap raises landed costs on foreign parts. Assemblers must now absorb the higher expenses or negotiate domestic purchasing contracts.

    Protectionist shelter for domestic assemblers

    Component vendors gain a protected customer base in a volatile retail market. Two-wheelers dominate urban transport in Karachi, Lahore and Rawalpindi. Consequently, motorbike parts rank among the largest consumer replacement categories in Pakistan.

    Motorcycle manufacturers must now speed up vendor localisation programmes. Assemblers that failed to build local supply networks over the past decade face immediate cost disadvantages. Competitors with higher domestic parts content will hold an edge.

    Retail buyers will feel the impact quickly at motorcycle repair shops and tyre dealerships. Importers of Japanese and Chinese radial tyres must raise wholesale prices or lose ground to domestic tyre makers in Punjab and Sindh.

    Credit guarantees and small business funding

    Credit guarantee measures accompanied the tariff decisions. The State Bank of Pakistan designed a structure to expand lending to small suppliers and the agricultural sector. The scheme provides 20 per cent first-loss coverage on loans to small enterprises, alongside 10 per cent coverage for medium industries and small farmers.

    Risk-sharing under the programme will flow through Agency Financial Institutions, connecting non-banking lenders and microfinance firms to state guarantees. The committee also amended the Second Supplemental Trust Deed of the Credit Guarantee Trust Fund. That step expands a housing finance facility created for the Prime Minister’s Mera Pakistan Mera Ghar initiative.

    Total supplementary grants cleared during the session reached Rs57.85 billion across 11 allocations. Within that sum, the Small and Medium Enterprises Development Authority secured Rs2 billion to execute its corporate plan.

    Restructuring state retail and infrastructure

    Industries and Production Division officials secured Rs11.329 billion to shut down the state-owned Utility Stores Corporation. The state retail chain operated thousands of discount grocery outlets nationwide. The closure forms part of a wider push to rationalise state enterprises.

    Infrastructure spending took up the rest of the major allocations. The Public Private Partnership Authority received Rs8 billion for project delivery. Meanwhile, the Ministry of Railways received Rs10 billion for the Thar Coal Rail Connectivity Project, linking domestic coal reserves to power stations and industrial buyers.

    Export Development Fund balances will also be invested in government securities to earn sovereign yields on idle trade funds. Revised customs tariff schedules take effect immediately across all major customs ports.

  • Apollo Tyres Inaugurates New Advanced Tyre Testing Facility In Chennai

    Apollo Tyres Inaugurates New Advanced Tyre Testing Facility In Chennai

    Apollo Tyres on Wednesday inaugurated a new Advanced Tyre Testing Facility at its Global Research and Development Centre outside Chennai. The new facility, the company says, will enable it to hasten the research and development process for tyres for passenger vehicles and two-wheelers.

    At the inauguration, Daniele Lorenzetti, CTO, Apollo Tyres said, “We strongly focus on continuous improvement in efficiency and effectiveness of product development and this new facility will further augment our testing capabilities for future vehicle models. We will be able to fine-tune the performance of our products by simulating closely the real-world conditions using this facility.”

    The company said that the new facility houses a new custom-designed Flat-Trac machine as well as an Anechoic chamber. The Flat-Trac machine will allow the company to test the dynamic behavior in a simulated environment with the machine testing and recording various parameters of the performance of the tyre. The company says that the new machine is capable of replicating maneuvers such as high slip angles seen during emergency maneuvers, high torque ramp-up and even varying degrees of lean (a measure of testing two-wheeler tyres).

    The Anechoic chamber, meanwhile, will be used to test the NVH properties of the company’s tyre ranges over varying simulated terrains allowing for its fine-tuning.

    Apollo Tyres says that the main beneficiaries of the new technology will be models developed for high-end passenger vehicles, electric vehicles and premium motorcycles.

    The company also said that the inauguration of the new testing centre was in line with the brand’s mid-term goals of deploying greater use of technology in the research and development process. The company has also set targets to improve sustainability in the use of raw materials in its tyre development and manufacturing processes.

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  • Nokian Tyres Says High Inventories In Europe To Hurt H2 Sales

    Nokian Tyres Says High Inventories In Europe To Hurt H2 Sales

    European distributors are holding back from buying costly winter tyres due to high inventories, Finland’s Nokian Tyres said on Thursday, adding it saw weakness in its Russian market too.

    “We expect short-term weakness in sales volume throughout Central Europe to continue during the remainder of the year,” Chief Executive Hille Korhonen told an investor call.

    Korhonen said summer tyre inventories in Central Europe were higher than normal, leading distributors to hold back on stocking winter tyres.

    “So it seems that the order intake is slower compared to many, many years and they will be ordering goods closer to the season,” Korhonen said, adding oversupply was putting pressure on prices.

    Korhonen said the company’s view on the Russian market had worsened through the year.

    “There is increasing uncertainty in the Russian market and my meetings with all key distributors in Russia earlier this month confirmed the weakness,” Korhonen said.

    Shares in Nokian were 3% lower in late trading.

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  • Apollo Tyres setting up around Rs 3,460 cr greenfield plant in Hungary

    Apollo Tyres setting up around Rs 3,460 cr greenfield plant in Hungary

    Apollo Tyres is setting up Europe’s largest greenfield plant in Hungary with an investment of 475 million euros to produce nearly 62 lakh tyres for passenger cars and heavy commercial vehicles per annum.

    The facility at Gyongyoshalasz, located less than 100 km from here, will start production early next year and it will produce tyres to cater to the entire European market.

    “Construction of Apollo Tyres’ first European greenfield plant at Gyongyoshalasz has started on April 10, 2015 and we will start production in early 2017. It will be Europe’s largest greenfield tyres plant,” Apollo Tyres (Hungary) KFT, Head – Project Controller, Amitabh Arya told .

    The Hungarian facility will be a state-of-the-art plant and once completed it will have a capacity to produce 5.5 million (55 lakh) passenger car and light truck (PCLT) tyres and 6,75,000 heavy commercial vehicle (HCV) tyres per annum.

    The total investment in the facility will be 475 million euro (about Rs 3,460 crore) and the Hungarian government was very excited about the investment from a leading Indian company.

    Hungarian Prime Minister Viktor Orban, at a joint press conference with visiting Indian Vice President Hamid Ansari last week, had specifically mentioned about the Apollo Tyres plant saying it was one of the largest foreign investments in Hungary.

    The Gyongyoshalasz facility will produce both Apollo and Vredestein branded tyres and will cater to the entire European market.

    Apollo Vredestein B.V. is part of Apollo Tyres Ltd and has its head office in Enschede, the Netherlands. It designs, manufactures and sells high-quality tyres under the Apollo and Vredestein brands in Europe and North America.

    Onkar S Kanwar headed Apollo Tyres Ltd, with its corporate headquarters in Gurgaon, is in the business of manufacture and sale of tyres since its inception in 1972.

    The company has grown manifold, establishing its footprint across the globe. It has manufacturing units in India and The Netherlands.

    The company markets its products under its two global brands – Apollo and Vredestein, and its products are available in over 100 countries through a vast network of branded, exclusive and multi-product outlets.

    At the end of its financial year on March 31, 2016, Apollo Tyres had clocked a turnover of USD 1.8 billion, backed by a global workforce of around 16,000 employees.

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