LONDON--(BUSINESS WIRE)--Technavio’s latest market research report on the global automotive steel wheels market provides an analysis on the most important trends expected to impact the market outlook from 2017-2021. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
Praveen Kumar, a lead analyst from Technavio, specializing in research on wheels and tires sector says, “The passenger cars segment accounted for the largest market share in the automotive steel wheels market in terms of volume in 2016. This is primarily due to the higher sales of passenger cars as compared to LCVs and M&HCVs, and the increasing production of these cars due to rise in population across BRIC countries.”
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The top three emerging market trends driving the global automotive steel wheels market according to Technavio research analysts are:
- Advances in technology by OEMs for manufacturing steel wheels
- Growing preference for lightweight steel wheels
- Increasing demand of low-priced cars in APAC
Advances in technology by OEMs for manufacturing steel wheels
The OEMs focus on reducing the weight of steel wheels to enhance fuel economy. Advances in technology enhance the manufacturing process of steel wheels, which can reduce weight, provide an aesthetic appeal by adding an upgraded wheel trim, and reduce cost.
The Steel Market Development Institute (SMDI) and Gianetti have launched a new design in steel wheels, which is comparable or almost equivalent to alloy wheels. This will help the auto manufacturers to reduce the vehicle weight and carbon emissions, thereby increasing the fuel economy.
“Thus, advances in technology and improvised materials have led to the development of high-strength steel wheels with lesser weight,” says Praveen.
Growing preference for lightweight steel wheels
In 2014, EU announced that the emission norms for heavy vehicles will soon be formulated. Carbon emissions are positively correlated to the fuel consumption of the vehicle. Fuel consumption can be reduced by equipping the vehicles with efficient powertrain, lowering vehicle weight, and improving the aerodynamics.
The efficiency of commercial vehicles is measured by the volume of cargo they can carry. A lighter M&HCV can transport more cargo as the emission per ton of cargo becomes less. All these factors have led the OEMs to reduce the weight of the vehicle by using lightweight steel wheels. Stringent legislations regarding carbon emissions will drive the demand for lightweight steel wheels during the forecast period.
Increasing demand of low-priced cars in APAC
The majority of the low-priced cars (also known as budget cars) are equipped with steel wheels as these require low maintenance cost, are durable, and affordable by OEMs. There is a growing demand for low-priced cars in APAC due to a rise in the number of potential first-time buyers who associate cars with high social status.
The sale of budget cars directly affects the automotive steel wheels market. There will be an increase in the sales volume of budget cars across the world owing to the related tax benefits from compact and small cars. For instance, in India, excise duty is imposed based on the size and cubic capacity (cc) of the vehicle. The excise duty is low for small vehicles that have low cubic capacities. The excise duty increases significantly if the size of the vehicle exceeds 4 meters. Thus, the growing demand for low-priced cars will drive the market automotive steel wheels market during the forecast period.
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