Global market review of road wheels - forecasts to 2016

Abstract

Although the North American and European aluminium wheel market has grown over the past decade, the pace of growth has slowed recently and, we believe, is set to decrease over the next few years. Advances in the use of steel, supported by industry groups such the American Iron and Steel Institute (AISI), has meant that manufacturers of steel wheels can meet alloy wheel designs head on.

Jim Cran, project manager of the American Iron and Steel Institute' s Wheel Task Force, told us: “Since 2005, the Big Three have significantly reduced the percentage of aluminium wheels they use. Cost was a huge driver. Also, the Big Three have recognised people want good looking wheels. Material is immaterial.”

In this, the fifth edition of this report, just-auto reviews the key market drivers for road wheels, and fully updates its market analysis.

Since our last review of wheels was published in August 2007, the outlook for the automotive industry has significantly changed. In late 2007, we were looking at a ‘managed slowdown' for the global economy and the automotive industry was very much part of that. By the end of 2008, however, major companies were struggling to keep their heads above water in the face of collapsed automotive markets.

Given the current state of the industry, just-auto has completely revised its estimates and forecasts of the OE road wheels market volumes and values.

This report provides a global overview of the automotive road wheels sector, providing top-level market fitment, volume and value estimates and forecasts from 2005 through to 2016. Our forecasts are not extrapolative but dependent on the underlying drivers of supply and demand. Our forecasts are largely based on interviews with our extensive international network of industry contacts. This allows us to consider and explain the meaning and implications of industry events, rather than offer simple description based on incomplete data.

In addition, and given the sheer volatility of the global economy at present, we have set out an ‘expected' , ‘best case' and ‘worst case' scenario applied to OE passenger car road wheels.