Why Are Wheel Prices Increasing?
June 2, 2021
This is not a drill.
Aftermarket wheels are one of the first mods that enthusiasts want to do to their cars. We fully understand that. After all, we are true enthusiasts too. So, this information has just become available to the aftermarket industry as a whole and it is important to us that we share this information with all of our fellow car enthusiasts too.
Due to the current climate of the world, wheel prices are going to start increasing on June 15th, 2021. This increase is going to happen across almost every wheel brand out there.
That means Rotiform, TSW, Niche, Motegi, among others, are going to start hiking up their wheel prices. And by no small amount.,,
What's Causing The Increase In Wheel Prices?
Wheel prices are about to skyrocket up to 15% primarily due to the increase in raw materials prices because of the huge tariffs on imported goods.
We know it hurts and you might not want to believe it's true, but we wouldn't play you guys like that.
As you all probably know, this has also happened with tire prices specifically due to dumping investigations of companies like Federal and their SS595.
Click the nice blue button and the video below to learn more about that whole mess.
Now, if we dive deeper into this issue, the raw material prices are increasing because of government tariffs, as previously mentioned, and general supply chain issues the automotive industry is experiencing. This is causing industry-wide inventory and shipping issues. And we all know the culprit of this—COVID-19. COVID-19 is messing up everything in the world so this is no surprise at this point; sorry not sorry.
Aside from COVID-19, the other big contributing factor to this mess is literally the Suez Canal blockage.
No, we're not joking.
This blockage initially put huge roadblocks in front of many industries worldwide, especially wheel companies, which they have not recovered from...obviously.
The Suez Canal was clogged by that giant a** boat for approximately 6 days causing some major ripples in supply chains for companies like WheelPros who owns over 20 different wheel brands.
So, you can imagine when a boat that has room to fit 20K shipping containers blocks a canal where 12% of global trade passes through thus blocking other boats with more product from passing...things are not going to look good for anyone.
See, some wheel companies see a JIT inventory management system that works by aligning raw material orders from suppliers directly with their production schedules. When the raw material orders get delayed for a couple of weeks, that pushes production schedules which messes up inventory. Their lack of new inventory is then compensated by price increases on their products (wheels).
This whole mess ruins every car enthusiast's dreams/plans of grabbing a new set of RSEs for their build this summer.
To put things in perspective on the price increase, let's say those Rotiform RSEs you've been wanting for your german cruiser are roughly $1.2K and for simplicity's sake let's say that Rotiform raises their wheel prices 15%; those RSEs are now going to cost you $1.4K ish now.
What Does This Mean For You?
So, with all that said, what does this mean for you?
Well, honestly, it means that if you were looking at grabbing a new set of wheels—like seriously considering grabbing a set in the next two weeks—get your wheels NOW.
For your sake, you're going to want to save yourself that few hundred $$ to put towards other car parts, ramen, that house you're saving up for, beer, or whatever you spend your hard-earned dough on.
As enthusiasts ourselves, we know how upsetting this is, especially if you've been saving up for some new wheels this year and/or were ready to buy a set very soon.
The reality is that you're either have to fork out a little more $$$ for your next set of wheels OR find a different set of wheels that are within your budget.
Just know that these price increases are going to be industry-wide and that it's been greatly impacted by both COVID-19 and global supply chain issues as a result of the Suez Canal blockage.
We don't see wheel prices going down any time soon until all the kinks are removed from their supply chain streams which could take longer than we even want to admit.