Market Trends of Automotive Wheel Industry
Passenger Car Captures Major Market Share
- Among vehicle types, the passenger car segment is expected to dominate the market, owing to the increase in passenger car sales and production during the forecast period. The majority of premium vehicles and mid-sized luxury vehicles are equipped with alloy wheels to improve the visual appearance and comfort of the vehicle owner.
- The demand for premium and luxury vehicles is increasing in developing economies like China and India because of the increased spending power of people living in the regions.
- Factors such as growing vehicle production and major countries across the globe opting for several government initiatives promoting e-mobility coupled with the manufacturing of vehicles across the major regions. However, the impact of the pandemic market has resulted in slow growth.
- In the year 2022, global passenger car sales were valued at 57.49 million units, which was a slight increase from the previous year's sales value of 56.44 million units. The growth was primarily attributed to increasing demand for passenger cars across developing economies, especially from Asia-Pacific. Further, growth in electric vehicle sales is further anticipated to drive the demand for passenger cars during the forecast period, which in turn will drive the demand for wheels.
- Owing to the increased demand for passenger cars and the growing awareness of electric mobility, major players are looking forward to electrifying their present fleet. For instance, in March 2022, Ford Motors announced its plans to include three all-electric passenger vehicles in Europe by the end of 2024. Additionally, they have set a target to sell more than 600,000 electric vehicles annually in the Europe region by 2026.
- The above-mentioned developments across the globe are likely to increase the demand for automotive wheels during the forecast period.
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Asia Pacific Remains the Market Leader
- Asia-Pacific is expected to dominate the automotive wheels market during the forecast period. This growth is mainly attributed to China and India. With almost 60% of vehicles in the world in the region, during the forecast period, the demand for automobiles in the region will be the highest globally, owing to the highest population percentage in the world, with two densely populated nations, China and India.
- The income level of the people in this region is also growing at a very rapid pace. The region accounts for a large share of mid-income level people and is concerned with the fuel economy of vehicles. With the reduction in the overall weight of the vehicle, the fuel economy is expected to grow. With the demand for automobiles, the wheels market is also expected to boost during the forecast period.
- China, being the largest automotive market globally, is also expected to play a crucial role in pushing the market forward, primarily due to the workforce and manufacturing capabilities of the country and the manufacturing-friendly governmental laws.
- The automotive wheel market in India is growing steadily, and the growth is expected to accelerate in the coming years. In India, the growth rate of alloy wheels is more than the growth in the automotive wheel market average. Passenger cars have been growing at a rate of approximately 9% per annum.
- The growth rate of alloy wheels has been more than 15%, which is expected to grow at 20% in the coming years. India manufactures alloy wheels of sizes ranging from 12 to 18 inches. However, the largest share goes to 14 to 16 inches alloy wheels, which cover approximately 70% of the market, as the components sector is strong enough to cash in on India's cost-effectiveness, profitability, and globally recognized engineering capabilities.
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