Turning New Corners

In concept, wheels and tires seem simple enough. They're round, grip the road, spin on their axles, bear the load of a car or truck, and take a vehicle where it needs to go. What more can be said?

For the aftermarket, plenty more. The right wheels and tires enhance a vehicle's performance, but more than that, they also make a statement. Plus, they continue to advance in complexity and design year after year. These and other factors have made them a favored category for the aftermarket.

In fact, wheels and tires, along with suspension components, rank among the industry's healthiest product segments, according to SEMA Market Research Director Gavin Knapp. "We often say the wheel and tire segments are the 'gateway drugs' to our industry. They are great categories to be in because when consumers are spending, that's their starting point. It's a place where they can get the most bang for the buck in terms of customizing and personalizing their vehicles," he said.

That spending is especially strong among pickup owners, he added. "Whatever you're going to do with your pickup or 4x4, you're going to get the wheels and tires for it. And if you're going to lift it, you're definitely getting new wheels and tires to go with that lift kit."

Younger consumers with a penchant for sportier cars also find wheel and tire upgrades irresistible. "Whether you have a true performance vehicle and want its outside look to match what's under the hood, or if you just want your Camry to look like it's a performance vehicle, wheels and tires offer an ideal way to do it," explained Knapp.

No wonder that—despite some initial worries in 2020—wheels and tires managed to not only ride out the pandemic but grow in sales. (Of course, tires had the added advantage of being a perishable necessity. "No matter what kind of car you have, whether it's a gas car, an electric car, a truck, a van, or whatever, there's always a need for tires," Knapp observed.)

Sizing the Market

Just how big are wheels and tires with consumers? According to the "2023 SEMA Market Report," the wheels, tires and suspension category accounted for $12.21 billion in sales, with wheels and tires contributing $6.60 billion to that total. Breaking down the figures further, the performance and special-purpose tire market was sized at $2.84 billion, off-road and oversized tires at $2.18 billion, and custom wheels at $1.58 billion. All these figures represent robust growth over prior years.

In terms of tire sales, performance and specialty categories do well across nearly every vehicle segment. Not surprisingly, pickup applications comprise 64% of off-road and oversize tire sales, with SUVs coming in a distant second at 25% of sales. The bulk of purchasing for all tire types is done in-store, although DIY installations account for 17% of off-road and oversize tire buys, and 20% for performance and specialty tires.

Pickup applications also make up the highest percentage of custom wheel sales (31%), followed by SUVs (18%), midsize and large cars (13%), CUVs (10%), small cars (9%) and sports cars (8%). Nearly 40% of all wheel purchases are made for in-store pickup and install. Online ship-to-home orders account for 25% of purchases, and online orders for in-store pickup and installation comprise 28% of purchasing.

• Increasing competition among China, India, Thailand and Vietnam will likely help manufacturers contain costs while expanding production.
• Advancing technology and logistics will allow manufacturers to make and move product faster and more efficiently.
• The rise of EVs will spur wheel and tire makers to address issues associated with higher torque, increased wear and tear, rolling resistance, weight and quiet operation.
• Additionally, as EVs go mainstream, their owners will likely become more open to vehicle modification than they typically are now, increasing wheel and tire sales in this space.
• Green and sustainability regulations and initiatives will undoubtedly also exert greater influences on the choice and sourcing of raw materials as well as manufacturing processes.

With these trends taking shape, competition is already heating up, especially among tire makers. And that competition has made marketing more important than ever, said Roman Racela, marketing director for the Venom Power and Predator Tire brands, subsidiaries of Transamerica Tire based in Memphis, Tennessee. Both the brands target the coveted truck
demographic.

"Obviously, there are many tire companies [and] other brands that we have to compete with," he explained. "We need to make sure that we have a good product and that people know about the brand."

For Racela, that has meant strong print and social-media campaigns with a heavy dose of influencer endorsements and consumer education.

"The selection for tires on any vehicle is really important," he observed. "It really boils down to philosophy of use. If you're going to use it for a specific purpose, you have to match your tools to accomplish your goals to reach your destination."

Fortunately, in today's tire market there's something for everyone. Aided by advanced technologies, tire designs and compounds continue to evolve, delivering constantly improved handling, grip and wet traction, plus improved rock and debris ejection to boot.

"We're able to offer superior powdercoating and acrylics," said Jim Kruse, the company's senior account manager for aftermarket wheels. "As far as finishes go, we offer any color you can imagine in the rainbow."

According to Kruse, Superior Industries also boasts the only OEM-approved PVD chroming process in the industry. "We've learned there's a lot of interest in coming back to bright chrome, and the PVD option is very environmentally friendly," he said.

The company further specializes in a laser-etching process that can reach down through different color layers applied to a wheel to create daring, intricate line patterns in the finish.

In regards to the wheels themselves, "flow-forged" products continue to gain in popularity due to their weight savings compared with cast wheels and their lower price points compared to forged wheels.

"Flow-forging technically is one of the most up-and-coming [manufacturing techniques] that we see," said Nazzaro. "There are a lot of new brands coming out of the Asian Pacific sector that are doing flow-forging, taking that path and kind of rolling the wheel out. That is probably the most advanced product that's coming out because forged wheels were usually on the highest end of spectrum on price, with your cast, flow-form stuff on the bottom." Bridging that gap would be key to success, he added, "because end users get a really well-put-together product for a mid-level price."

Meanwhile, the wheel accessories market is also looking up, said Chris Buck, owner of Custom Wheel Accessories. Based in Murrieta, California, the family-run wholesale distributor is dedicated to supplying a full line of lug nuts, spacers, valve stems, wheel weights, and all the hardware needed to mount and balance wheels.

Asked what the current big sellers are, Buck replied: "OEM, Ford and GM lug nuts are very hot, but probably our hottest commodity are aluminum spacers. Whether you're spacing the wheels out for a more aggressive look, or if you have a set of wheels you want to put on a vehicle of a different bolt pattern, we offer almost 400 SKUs of just spacers and adapters alone."

"Some of the old vintage stuff has definitely been dying off—hubcaps, knockoff spinners, things of that nature," he continued. "But we're trying to bring that stuff back because they've been phased out over time and there is still a demand for older vehicle stuff [like] wire wheels and
spinners."