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Stringent fuel efficiency regulations and a shared focus on reducing emissions are pushing manufacturers towards lighter vehicles. Lightweight wheels are a key contributor, as they directly impact fuel economy and emissions output. Advanced materials like high-strength steel, aluminum alloys, and even carbon fiber are making inroads, offering lighter yet robust options.
Consumers are increasingly drawn to vehicles with a distinctive and sporty look. This trend translates to a demand for stylish wheel designs with a variety of finishes, catering to individual preferences and enhancing the overall visual appeal of a car.
New manufacturing techniques like 3D printing and flow forming are revolutionizing the industry. These methods allow for the creation of intricate wheel designs with optimized weight distribution and improved structural integrity, pushing the boundaries of what’s possible.
The concept of life cycle assessment is gaining traction. This approach considers the entire life cycle of a wheel, from material sourcing to end-of-life recycling, promoting responsible practices throughout the entire process.
The rise of connected vehicles with advanced data analytics capabilities could potentially lead to predictive maintenance for wheels. Imagine data-driven insights optimizing wheel lifespan and performance, further enhancing safety and driving experience.
The Global Automotive Wheels Market is on a journey toward a future where functionality seamlessly blends with aesthetics. We can expect lighter, stronger, and visually appealing wheels crafted from sustainable materials.
The automotive wheels must withstand the weight of the vehicle and this is the primary function of it. It also plays a role in providing the structure and support for the tires. The wheels nowadays are designed to increase the aesthetic appeal of the vehicle. The alloy wheels and finishing to the wheels are crucial in enhancing the aesthetic look of an automobile.
A wide variety of aftermarket wheels are available for purchase, allowing car owners to personalize their vehicles. These wheels cater to diverse preferences, offering a spectrum of styles, finishes, and materials (alloy, steel, forged) to enhance aesthetics and potentially improve performance.
The Global Automotive Wheels Market caters to specific needs within each vehicle segment. The focus on lightweight, performance, aesthetics, and sustainability continues to drive innovation in wheel design and manufacturing, shaping the future of this dynamic market.
In the US market, the top 30 selling cars are dominated by SUVs and pick-up trucks and hence evidently the rim size in these vehicles is higher compared to sedan and hatchbacks. Ford alone has 3 SUVs and 1 pick-up truck and hence most of its vehicles come with 18” rim size in entry models and go up to 21” size.
However, the lone sedan in the list Ford Fusion has a lower rim size of 17” in most of the variants and 19” in only one of the variants. Toyota has 2 sedans and 1 SUV in the top 10 selling cars. Also, none of the Toyota cars feature rim size >19” and also the presence of a higher number of hybrid variants has led to opting for lower diameter rims. Toyota also features a 15” rim wheel model i.e., Corolla. Along with the Hyundai Elantra, only the Corolla features 15” rim wheels on the list.
Chevrolet is one of those 3 brands among top top-selling vehicles that provide 22” rim wheels to its models. These 22” is usually an option for the higher-end variants. The sedan Malibu and SUV Equinox rim sizes vary from 17” to 19”. The Jeep vehicles all of them being high-performance vehicles SUVs and pick-up trucks with 20” rim wheels are found.
Nissan and Honda’s vehicles have all of their models featuring wheels with sub 20” rim-sized ones.
In the European region cars with 14” diameter wheels are found. Volkswagen Polo and Fiat 500 are the 2 models with this minimum size of rims. Also Volkswagen with its Tiguan is the only other model along with Ford Kuga to feature a 20” rim with the largest size rim in European top selling cars. The average rim size in the cars in this region is found to be between 17’ and 19”.
In China irrespective of SUVs and sedans the passenger cars are all found to be sub 20” wheels as none of the top-selling models feature 20” diameter wheels. Volkswagen Santana and Wuling Hongguang are the only models with 14” diameter wheels. The average size of rim diameter of these wheels is found to be 16”-18”.
Similar to China there is no single passenger car on the list with a wheel having a 20” rim diameter. The 19” wheel is featured in only 3 models Toyota Rav4 C-HR and Mazda CX-5. The small size wheels with 14” rim diameter are found in only a few models such as Toyota Tank, Passo, Voxy and Roomy, Nissan Note, and Suzuki Solio.
Honda in a few vehicles vary the rim size based on the drive, for 4WD lower size ones are compared to higher size wheels for front wheel drive cars.
Ford with 5 of its cars in the top 30 selling list in the region has aluminum wheels as standard and different finishes of aluminum wheels as an optional packages. Sparkle silver painted finish is commonly found in the steel wheels used as standard among low-end models in Ford Fusion and Ford F150.
The polished aluminum finish is the most commonly found finishing among aluminum wheels. 6 and 5 spoke with twin and multi-spoke design is found in the SUV and pick-up range of vehicles. The Toyota vehicles in the region are all featured with alloy wheels primarily except for the entry-level models. Black and silver machined alloy wheels are found majorly in these vehicles. Toyota Camry features a V spoke design only vehicle to feature this design among top-selling cars.
All of the Chevrolet cars 4 of them in the top 30 feature aluminium wheels. Twin spoke design is the most common design found in these vehicles. Bright silver painted and machined face finish is found in Chevrolet vehicles.
The Jeep vehicles all are featured with aluminum wheels. The long list of variants in Jeep models has various finishing for these wheels. Gloss black paint, satin carbon, granite crystal, tech silver, and tech grey finishing are found. Jeep Cherokee and Compass models feature diamond-cut design wheels.
In Nissan, every 16” wheel is found to be steel wheels and the rest of the models are equipped with alloy wheels. Nissan Sentra features dual-spoke design wheels. The Honda has every variant of its models with alloy wheels. Honda CR-V has 5 spoke wheels; whereas the Civic model features 15 spoke wheels in one of its variants. A black alloy wheel with a chrome and bronze accent finish is found in the Honda Accord. Honda CR-V features the diamond cut spoke design wheels.
The 22” wheels found in GMX Sierra and Ram 1500 are all aluminum wheels with carbon gray and dark gray finishing. Ram 1500 has cast aluminum wheels.
Volkswagen with 5 models in the top 30 cars in the region is the most for any automaker. The base models of the car come with steel wheels, but the alloy wheel is found in every other variant. Gloss black, grey metallic, and dark graphite finishing is found in these alloy wheels. These cars come with mostly 4, 5, and 10-spoke wheels.
Peugeot models are equipped with alloy wheels as standard features. The various finishes for alloy wheels are carbon two-tone, dark finish, and Saphir black finish to these alloy wheels. Diamond-cut design spokes are found in these wheels.
Ford mostly has alloy wheels as standard in all its variants and has the highest number of different finishes to the wheels. Most commonly found are luster nickel, magnetic machined, shadow silver, and matt black finishes.
Toyota has alloy wheel standards across all its models and variants with matt black, black machined face finish the most frequently found finishing for these wheels. Double-spoke design is found in the Toyota models. Renault across its 3 models Captur, Clio, and Megane alloy wheels are standard. Diamond cut design is commonly found in these wheels.
Dacia cars come with mostly steel wheels in most of its variants and only top-end variants are available with alloy wheels. Skoda has all of its models with alloy wheels with different shades of black finishing.
Vauxhall Corsa along with Opel Astra and Fiat 500 comes with a bi-colour alloy wheel. Mercedes A-class cars the only luxury brand cars in the list come with platinum vanadium alloy wheels and also forged alloy wheels for the AMG version. The AMG version also comes with a 7 twin spoke cross design.
The Chinese cars are dominated by aluminum alloy wheels as only 3 models are equipped with steel wheels in the base models. Nissan Sylphy, Volkswagen Santana, and Roewe Ei5 are the only models with steel wheels for their base models. The aluminum alloy wheels are available for these models themselves but for different other variants. The best-seller SUV Haval H6 gets Aluminum alloy wheels as standard on all variants.
China`s car industry declined by just 6% in 2020 YOY to ~20M units. At one point in March 2020, it seemed as if the car industry would decline by at least 25% for the full year.
In 2020, the electric vehicle sales reached an all-time high of ~1.4M vehicles, a growth of 16% YOY. Electric vehicles, especially premium long-range BEVs have aerodynamically designed wheels for longer range. This product segment is most lucrative at the moment for wheel suppliers.
After the overwhelming success of NIO, Xpeng, GAC Aion, we believe, the China market is now ready for disruption in the long range BEV segment. Since many OEMs will start with low volumes, the probability of them being contract manufactured by a third-party company is higher, and thus wheel suppliers should formulate their strategy on those lines.
Toyota in 7 of its models features a steel wheel as a standard option in entry models. Usually, the lower-size diameter wheels are steel wheels. The aluminum alloy wheels come with cutting glitter black paint, hyper chrome metallic paint finish and also forged and sputtered aluminum wheels.
Honda provides steel wheels in the base variant of almost all models whereas the subsequent variants are all aluminium alloy wheels.
Subaru vehicles come with dark grey or black machine-finish aluminium alloy wheels. Mazda CX-5 with a greater number of variants has a high variety of finishes for its alloy wheels. Grey metallic paint, gun metallic paint, and high-brightness dark paint. The overall passenger car sales declined by almost 11% to ~4.5 Million units in 2020, helped by a sharp rebound in H2-2020.
India has traditionally been one of the most important markets for steel wheels as the tractor and commercial vehicle industry is one of the biggest in the world. The tractor industry in India (the world`s biggest market) has outperformed every industry segment in 2020 so far with ~0.6 Million units sold in the first 9 months of 2020.
The two-wheeler industry in India (the world`s biggest market) continues to be under pressure due to high fuel prices. Commercial vehicle sales have been the slowest to revive post-pandemic and the much-awaited scrappage policy could be a potential demand driver.
Despite COVID gloom, there is a huge premiumization trend in two-wheelers as well as passenger cars, and subsequently alloy wheel demand has been consistently growing.
The leading wheel manufacturers are Mangels Industries and Iochpe-Maxion from Brazil, Ronal AG and Borbet (Germany), CLN Group (Italy), Superior Industries and Accuride (US). Some of the Asian based wheel makers are Enkei Group (Japan), Wanfeng Auto Holding Group (China), Superior Alloy Industries (Taiwan), Wheels India, and Steel Strips Wheel Ltd (India).
Earnings for Wheels India had already started declining pre-COVID due to a slow down in the Indian auto industry. It reported a decline of ~22% in FY 2020 YOY and EBITDA margins contracted to ~7%. The company has made a significant investment in a cast aluminum wheel to cater primarily to OEMs and after-market requirements in international markets.
Enkei Wheels India is much smaller than Wheels India and has even lower margins. Steel Strips Wheels is among the leading alloy wheel manufacturers in India, has significant exposure to export markets, and thus has the highest margins (~13% EBITDA).
Super Alloy Industries reported its monthly operating revenues of $661 Million for June 2021 the amount was 39.77% higher as compared to the same month in 2020, it also witnessed an increase in its annual revenue by ~60%.
Iochpe Maxion claims that the restructuring measures carried out in 2020 are beginning to reflect positively on the Company’s results. Its net operating revenue increased 40.8% in 1Q-2021 compared to 1Q-2020, reaching R$ 3.1 billion, a record for the Company’s quarterly revenue, driven mainly by the growth in sales in Brazil, North America, and Asia, and by the exchange rate variation. The company achieved an adjusted EBITDA of R$ 374.7 million in 1Q-2021, another quarterly record for the Company, with a margin of 12.0% and an increase of 78.5% compared to 1Q-2020.
In a combination of Wheels Inc. and Donlen LLC, Athene, an industry-leading financial services company, has become the new principal stakeholder. The merging of the two companies will create a single organization that will be able to provide increased mobility solutions and products to some of the most well-known small, medium, and large fleets.
The new business has more assets, a broader product line, and a more diverse customer base. They’ll most likely be rated investment-grade. The Athene-led investment prioritizes long-term stability and outstanding customer service. To ensure a smooth transition for all stakeholders, the new firm wants to adopt a cautious approach to integration and will retain both companies’ skilled people and continuity of client-facing relationships.
Because of the breadth of Athene’s finance and financing capabilities, the firm will be able to provide clients with a new and improved set of solutions for a variety of fleet and ancillary needs. Wheels’ Chief Financial Officer will serve as CEO of the new company, and members from both Wheels and Donlen will serve on the management team and Board of Directors.
Donlen’s CEO will now be a senior executive and a member of the amalgamated company’s board of directors.
North America
The North American market, particularly the USA, will be one of the prime markets for (Automotive Wheels Market) due to the nature of industrial automation in the region, high consumer spending compared to other regions, and the growth of various industries, mainly AI, along with constant technological advancements. The GDP of the USA is one of the largest in the world, and it is home to various industries such as Pharmaceuticals, Aerospace, and Technology. The average consumer spending in the region was $72K in 2023, and this is set to increase over the forecast period. Industries are focused on industrial automation and increasing efficiency in the region. This will be facilitated by the growth in IoT and AI across the board. Due to tensions in geopolitics, much manufacturing is set to shift towards the USA and Mexico, away from China. This shift will include industries such as semiconductors and automotive.
Europe
The European market, particularly Western Europe, is another prime market for (Automotive Wheels Market) due to the strong economic conditions in the region, bolstered by robust systems that support sustained growth. This includes research and development of new technologies, constant innovation, and developments across various industries that promote regional growth. Investments are being made to develop and improve existing infrastructure, enabling various industries to thrive. In Western Europe, the margins for (Automotive Wheels Market) are higher than in other parts of the world due to regional supply and demand dynamics. Average consumer spending in the region was lower than in the USA in 2023, but it is expected to increase over the forecast period.
Eastern Europe is anticipated to experience a higher growth rate compared to Western Europe, as significant shifts in manufacturing and development are taking place in countries like Poland and Hungary. However, the Russia-Ukraine war is currently disrupting growth in this region, with the lack of an immediate resolution negatively impacting growth and creating instability in neighboring areas. Despite these challenges, technological hubs are emerging in Eastern Europe, driven by lower labor costs and a strong supply of technological capabilities compared to Western Europe.
There is a significant boom in manufacturing within Europe, especially in the semiconductor industry, which is expected to influence other industries. Major improvements in the development of sectors such as renewable energy, industrial automation, automotive manufacturing, battery manufacturing and recycling, and AI are poised to promote the growth of (Automotive Wheels Market) in the region.
Asia
Asia will continue to be the global manufacturing hub for (Automotive Wheels Market) over the forecast period with China dominating the manufacturing. However, there will be a shift in manufacturing towards other Asian countries such as India and Vietnam. The technological developments will come from China, Japan, South Korea, and India for the region. There is a trend to improve the efficiency as well as the quality of goods and services to keep up with the standards that are present internationally as well as win the fight in terms of pricing in this region. The demand in this region will also be driven by infrastructural developments that will take place over the forecast period to improve the output for various industries in different countries.
There will be higher growth in the Middle East as investments fall into place to improve their standing in various industries away from petroleum. Plans such as Saudi Arabia Vision 2030, Qatar Vision 2030, and Abu Dhabi 2030 will cause developments across multiple industries in the region. There is a focus on improving the manufacturing sector as well as the knowledge-based services to cater to the needs of the region and the rest of the world. Due to the shifting nature of fossil fuels, the region will be ready with multiple other revenue sources by the time comes, though fossil fuels are not going away any time soon.
Africa
Africa is expected to see the largest growth in (Automotive Wheels Market) over the forecast period, as the region prepares to advance across multiple fronts. This growth aligns with the surge of investments targeting key sectors such as agriculture, mining, financial services, manufacturing, logistics, automotive, and healthcare. These investments are poised to stimulate overall regional growth, creating ripple effects across other industries as consumer spending increases, access to products improves, and product offerings expand. This development is supported by both established companies and startups in the region, with assistance from various charitable organizations. Additionally, the presence of a young workforce will address various existing regional challenges. There has been an improvement in political stability, which has attracted and will continue to attract more foreign investments. Initiatives like the African Continental Free Trade Area (AfCFTA) are set to facilitate the easier movement of goods and services within the region, further enhancing the economic landscape.
RoW
Latin America and the Oceania region will showcase growth over the forecast period in (Automotive Wheels Market). In Latin America, the focus in the forecast period will be to improve their manufacturing capabilities which is supported by foreign investments in the region. This will be across industries mainly automotive and medical devices. There will also be an increase in mining activities over the forecast period in this region. The area is ripe for industrial automation to enable improvements in manufacturing across different industries and efficiency improvements. This will lead to growth of other industries in the region.
