General Tyre and Rubber Company (GTR) is planning to invest $300 million in the auto industry of the country.
The local company is the largest tyre producer in the country. Sensing the growth in the auto industry, inception of new auto manufacturers and the promising opportunities of CPEC, GTR has decided to build a state of the art plant in the Special Economic Zone (SEZ) in Faisalabad.
Established in 1963, the company has vast experience and understanding of the Pakistani market. Currently, GTR holds the 20 percent market share. With the new plant, they want to increase their share and tackle the expected growth in the auto industry.
GTR has already purchased the land for the plant and concluded the feasibility report, and now they are awaiting the government permission to start the work. “The board members of the company have approved the investment, and we are all set to build a plant at Special Economic Zone (SEZ) in Faisalabad which was established under CPEC,” said GTR Chief Executive Officer and Managing Director Hussain Kuli Khan.
According to our sources, the company is negotiating with new entrants especially Hyundai Nishat, KIA Lucky Motors and Volkswagen to crack a deal so that these companies use their tyres instead of expensive imported options.
Although the government has restricted the import of vehicles in the country, GTR is of the view that the government must resolve the smuggling issues related to tyres in Pakistan where traders are also involved and import used, substandard tyres in the country. Moreover, GTR praised the government initiative to curb the smuggling gateway through Afghanistan.
“There should be proper documentation of tyres, if someone found having no documents regarding the tyres he is selling, the dealership or shop must be seized,” said GTR, CEO.
The government has allowed non-filers to purchase cars up to 1300cc which will inevitably increase the number of new vehicles purchased in Pakistan. There is a need that government integrates and regulate the industries related to the auto industry so that businesses flourish in Pakistan.