SAN JOSE, Calif. (Nov. 27)—Revenue from tire and wheel replacement sales in North America will grow at a pace twice that of unit growth in the coming six years, as demand rises for more aesthetically pleasing, higher performance—and higher priced—products, according to a new study. The analysis, from market consultants Frost & Sullivan Inc., forecasts the value of the tire and wheel aftermarket to grow more than 6 percent annually in the 2000-2007 period to $15.7 billion, whereas unit sales will expand 2.5 percent annually to nearly 305 million tires and wheels by 2007. "The most popular end-user groups for tire manufacturers are light truck and (sport-utility vehicle) owners," said Meenakshi Ganjoo, industry manager for Frost & Sullivan. "Demand for replacement and performance tires for light trucks and SUVs has surpassed that of passenger vehicles or sports cars." The trend to larger wheel sizes and a desire for differentiation will help drive up the per-wheel revenue, the study concludes.
Study: Revenues from tire, wheel sales to grow 6 percent annually
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