APAC automotive aluminum tyres and wheels market to expand at 3.3% CAGR over 2023-28, says GlobalData

As the choice of Asia-Pacific (APAC) consumers is shifting towards more premium-looking, luxurious cars, demand for wheels is also shifting towards aluminum wheels over steel.

The demand is also driven by the rising adoption of electric vehicles (EVs). Apart from providing a premium look, aluminum wheels can also offer better fuel efficiency and EV battery range as they are lighter in weight. In this context, the aluminum wheel market in APAC is expected to post a compound annual growth rate (CAGR) of 3.3% during the 2023-28 period, according to GlobalData, a leading data and analytics firm.

GlobalData’s latest report, “Global Sector Overview & Forecast – Automotive Tyres and Wheels” reveals that the tyres and wheels market in APAC is estimated to reach 516.4 million units in 2023 and 572.8 million units by 2028, with an anticipated CAGR of 2.1% during 2023-2028.

Madhuchhanda Palit, Automotive Analyst at GlobalData, comments: “Aluminum wheels exhibit a significantly lighter weight compared to steel wheels, leading to decreased rolling resistance and enhanced fuel efficiency. In the case of EVs, the lighter aluminum wheels contribute to an overall reduction in the car's weight, extending the battery's ability to power the vehicle for an extended period and thereby improving the battery range. In the APAC region, where consumers prioritize cost efficiency, this factor is poised to drive the future demand for aluminum wheels.”

In India, the primary concern for customers often revolves around fuel efficiency when considering the purchase of a car, making aluminum wheels a preferred choice. The surge in demand for aluminum wheels in India is further fueled by their positive impact on battery range in EVs, a segment that is witnessing substantial growth. The resistance of aluminum wheels to rust and corrosion adds to their appeal, ensuring durability and a lasting shine, particularly advantageous in India's tropical climate. Additionally, the premium aesthetic provided by aluminum wheels is a significant factor influencing the purchasing decisions of Indian consumers when it comes to cars.

Palit concludes: “Despite the numerous advantages of aluminum wheels over their steel counterparts, pricing emerges as a pivotal consideration for consumers in the APAC region. While countries such as Japan and Korea predominantly feature passenger cars equipped with aluminum wheels, the cost factor weighs significantly in the decisions of consumers in nations such as India and China.

“Aluminum wheels are priced significantly higher than steel wheels which is why economy cars are still coming with steel wheels. Steel wheels typically hold a competitive edge in terms of strength and durability, making them the preferred choice for heavy-duty fleets. Additionally, the repair process for steel wheels is simpler and more cost-effective compared to aluminum wheels."