‘Impressive developments elevate tyres industry’

LAHORE: Impressive developments, particularly in the communication sector, have elevated the tyre industry as a vibrant area of investment in Pakistan, Jinan Kemp International Trading Company Chairman George Sun said on Thursday.

Representing the pioneer in Chinese tyres industry, he informed Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI) President Shah Faisal Afridi that his team has developed O2O (online-to-offline) business model, according to which consumers go to a portal controlled by the company and then go to a bricks-and-mortar outlet to get the tyres fitted.

The portal owners offer the opportunity for the buyer to select a local outlet and arrange an appointment, the portal owners then work with logistics team to get the tyres to the local outlet, he said.

Careful strategic planning is behind the steady growth of his brand both on the domestic, as well as on global front, Sun said.

The company has adopted technology innovation as its development mantra that is excellently reflected in its introduction of radial technology for the first time.

Afridi said that Chinese O2O (Online-to-offline) model practiced in tyres industry can establish backward and forward supply linkages in Pakistan.

Collaboration with the innovative Chinese tyres industry can bridge the huge demand gap for tyres in Pakistan, he said, adding that the tyres industry of Pakistan could hardly meet 12 to 15 percent demand and the shortfall paves the way for the international tyre companies in Pakistan that in his view is a positive development.

Keeping in view the growing demand, the government could attract domestic, as well as foreign investment in the rubber tyres industry by resolving structural problems of the sector, the PCJCCI president said.

Afridi said that rampant tyres smuggling in Pakistan has scared away foreign investors. India is taking advantage of the situation by offering special incentives to the investors and that is why global tyres manufacturers are strengthening their place in the Indian market.

He said that according to the industry estimates, 37 percent of the domestic demand in Pakistan is grabbed by smuggled tyres.