Manufacturer sales of specialty automotive products reached $12.94 billion in 2006, an 8.28% increase from the previous year, according to SEMA Research. This total represents just over a third of what the industry generated at the retail level—$36.7 million.
During the past 10 years the industry has had annual increases in growth at the manufacturer level averaging 7.4%, Several factors may contribute to the increase, say SEMA researchers: Since 1996, annual new-vehicle sales growth averaged 1.07 percent. By 2005, there were 238 million cars on the road, a 19.9% increase from 1996.
And finally, the popularity of shows like “Pimp My Ride” and “Overhaulin’” has taken the specialty-equipment market mainstream. A telephone survey commissioned by SEMA in March 2007 found that 25% of adult American drivers planned to purchase specialty-equipment products within 90 days. Nearly 20% said they planned to buy wheels, tires and/or suspension products.
For further insight into the market, link to the June 2007 issue of SEMA News by clicking here, or visit www.sema.org/research for more original market research made available exclusively to SEMA members.