One of the key factors contributing to this market growth is the increasing demand for vehicles across the world. The global automotive aluminium wheels industry has also been witnessing an increasing manufacturing of wheels in the APAC region. However, the availability of other lightweight wheel material could pose a challenge to the growth of this market.

“ Many large global firms are nowadays outsourcing manufacturing activities to low-cost destinations in the APAC region to reduce manufacturing costs,” said an analyst from Research and Markets, which published the report.

“In fact, many automotive manufacturers have started product development operations in developing countries to leverage the talented and low-cost labour available there. For instance, in 2011, several automotive companies in Western Europe and North America outsourced a large number of manufacturing operations to China. As a result, the global automotive aluminium wheels industry is growing at a faster pace in developing economies as compared to developed economies.”

One of the main challenges in the market is the availability of other light weight wheel materials such as micro alloyed HSLA steel. This is expected to have a negative impact on the usage of aluminium in automotive wheels.