Trends in the European and American Wheel Hub Market

1. The overall market is under pressure, but structural opportunities are emerging

Traditional tire giants in Europe and America have generally experienced a decline in performance: Michelin, Goodyear, Continental, and others have seen a decrease in sales or profits in 2025, mainly due to the sluggish European automotive market, weak demand in North America, and high raw material costs.

The Alternative Market (AM) has shown relatively stable performance: despite a decline in OEM shipments, the replacement tire market is expected to grow in 2024-2025, particularly with a significant increase in demand for light and medium truck tires.

Continuous penetration of large-sized tires: The proportion of large-sized SUV tires such as 275/60R20 in the replacement market has increased from 2.0% in 2022 to 2.3% in 2025; Pirelli's sales of 18 inch and above tires in the European and American replacement markets will increase by 5% -6% in the first half of 2025.

2. Lightweight and material innovation acceleration

Magnesium alloy and aluminum alloy wheel hub technology is mature: North American magnesium alloy wheels have entered the pilot to mass production stage, focusing on lightweight, high-strength, and digital manufacturing.

Spinning/forging technology becomes mainstream: It is expected that by 2026, spinning wheel hubs will account for over 40% of the passenger car matching market, meeting the demand for lightweight and low inertia in new energy vehicles.

The emergence of intelligent wheels: Intelligent wheels integrating TPMS, load monitoring and other functions are in the pilot stage and are regarded as an important entrance to the perception layer of autonomous driving.

3. Supply Chain and Capacity Restructuring

Capacity transfer to Southeast Asia and Mexico: In order to avoid trade barriers (such as the EU carbon tariff CBAM and the US IRA bill) and reduce costs, leading companies are accelerating their overseas capacity layout.

China's export share continues to increase: In 2023, China's wheel hub exports accounted for 38% of global trade volume, and are expected to reach 42% by 2026, but they are facing anti-dumping and compliance pressures in Europe and the United States.

4. Structural demand for driving new energy vehicles

The proportion of new energy dedicated wheels is rapidly increasing: from 22% in 2024 to over 35% expected in 2026, due to special requirements for low rolling resistance and high heat dissipation wheels in new energy vehicles.

Market differentiation of OEM matching in Europe and America: Michelin's sales in the North American PCR matching market declined by 1% in the first half of 2025, mainly due to the impact of tariffs and economic slowdown on new car sales.

5. Evolution of market competition pattern

High value conversion becomes the core strategy: Pirelli achieves counter trend growth by increasing the proportion of high-value tires (76% → 79%).

Chinese brands are accelerating their entry into the European and American markets: Michelin executives warn that China's tire market share in Europe has soared from 5% to 20%, posing a challenge to traditional manufacturers.