The arson at Gazi Tyres’ Rupganj factory in August 2024 sparked fears of an import-heavy tyre market in Bangladesh, as industry stakeholders predicted supply disruptions and price volatility.
Gazi Tyres, a leading domestic player, was responsible for supplying around 10–15 per cent of the domestic heavy commercial tyre market, and 65–70 per cent of tyres used in smaller vehicles such as rickshaws, three-wheelers, and minibuses.
The disruption of such a key player raised concerns, particularly within the transport and logistics sector, already sensitive to foreign exchange fluctuations.
However, contrary to initial market predictions, local manufacturers quickly absorbed most of the shock. Meghna Group, Pran-RFL Group, and Apex Hussain Tyre ramped up production, increased capacity utilisation, and accelerated investment plans to stabilise the domestic supply.
What followed, however, was less of a coordinated industry response and more of an opportunistic shift. With one major player temporarily out of the market, existing manufacturers found themselves in a demand-heavy environment with reduced competition in specific segments.
It created a window not only to absorb unmet demand but also to reassess their long-term positioning in a market historically fragmented and import-driven.
Bangladesh’s tyre market is valued at around Tk8,000 crore, with approximately Tk2,000 crore generated from tyres used in small vehicles like rickshaws, three-wheelers, and minibuses.
The remaining Tk6,000 crore is attributed to heavy commercial vehicle tyres, such as those used in buses and trucks. Before its production halt, Gazi Tyres dominated smaller segments but held a significant share in the commercial vehicle sector.
The vacuum left by the factory fire in 2024 sparked a dramatic shift in how manufacturers approached their production and market share.
Meghna Group Operations Director Luthful Bari said that after Gazi Tyres’ exit, his company increased its production by 30 per cent in the heavy vehicle tyre segment, while the three-wheeler segment saw a 50 per cent growth.
Meghna Group has invested heavily in a new plant in Mirzapur, Tangail, focusing on expanding its capacity for heavy vehicle tyres.
Bari remarked that Bangladesh no longer faces a supply gap in the tyre market and that the country is no longer dependent on imports for tyre supply. This sentiment was echoed by import data seen by TIMES of Bangladesh.
The data shows that tyre imports spiked briefly after the Gazi Tyre factory fire in August 2024. However, local manufacturers swiftly ramped up production, and by 2025, imports had returned to lower levels than the previous year.
Bus and truck tyres, which account for over 80 per cent of the market share and are heavily reliant on imports, saw significant fluctuations. Imports of these tyres increased from 4.57 lakh units in 2023 to 5.08 lakh units in 2024.
However, as local manufacturers adjusted their capacity, imports of bus and truck tyres declined to around 4.82 lakh units by 2025.
Similarly, light commercial vehicle tyre imports rose sharply from 1.68 lakh units in 2023 to 2.32 lakh units in 2024 but decreased to 2.10 lakh units in 2025, indicating a stabilisation in the import market.
The pattern, particularly in motorcycle and commercial vehicle tyre segments, contrasts with early market expectations, where analysts predicted a prolonged import surge following the factory fire.
Pran-RFL Group Marketing Director Kamruzzaman Kamal confirmed that their tyre supply across all segments had increased by around 100 per cent since the incident.
“The growing demand for tubeless tyres, especially for motorcycles and three-wheelers, has driven this surge,” he said.
Industry insiders attribute the absence of a major import dependency shock to the fact that local factories were already operating below full capacity. This allowed them to respond quickly and absorb the shock without significant reliance on imports.
What was initially feared to be a potential crisis has instead accelerated local expansion, with manufacturers stepping up production to meet the growing demand.
In a market once dependent on imports, Bangladesh’s tyre industry has proven to be more resilient, as local factories have kept the wheels of the economy moving despite the shock caused by the Gazi Tyres fire.
