Automotive Specialty Industry Enjoys Superb Growth in 2003

SEMA Reports Annual Market Sales of $28.9 Billion, Up 7.7 Percent

DIAMOND BAR, Calif., April 2 -- The U.S. automotive specialty equipment industry grew 7.7 percent to $28.9 billion in 2003. The market's 2002 sales of products such as appearance accessories, racing and performance parts, and suspension and handling equipment totaled $26.8 billion.

"Our industry has very good news to report in a sluggish economic climate," said Christopher J. Kersting, president and CEO of SEMA, the Specialty Equipment Market Association. Kersting made the SEMA market-size announcement at the Motor Press Guild (MPG) meeting held in conjunction with the opening of the 7th International Auto Salon at the Los Angeles Convention Center.

"Although we are far ahead of the overall economy, our very good news is not only about the money," Kersting said. "Our industry's sales reflect the excitement, performance and utility of the products we offer to make daily driving more fun, convenient, comfortable, efficient and more suited to personal lifestyles. Automotive motifs are pervasive in our culture today -- we see them in movies, hear them in music, and play 'automotive' in video games. It's obvious that Americans and their vehicles are seamed together."

Appearance accessories accounted for a majority share (57.7 percent) of the automotive specialty industry, with nearly $17 billion spent on items like truck bedliners, graphics, body kits, and sunroofs.

Handling improvements from performance braking systems, steering, suspension products, custom wheels and performance tires took the second largest share of the market at $7.27 billion, or 25.1 percent of the market. Within the handling equipment sector of the market, performance tire sales were $3.5 billion, running closely with custom wheel sales at $3.3 billion.

Products to improve performance or for use in racing generated $5.08 billion (17.6 percent of the total).

"The balance of product sectors within our market didn't shift much last year," commented Kersting. "Appearance accessories' market share grew by one-tenth of one percent: the market share for handling was exactly the same as in 2002, and performance and racing products, while sliding about half a percent, grew in dollar sales from $4.9 billion in 2002 to $5.2 billion in 2003."

"Analyzing the numbers with our market research staff, it's apparent that automotive appearance products are becoming increasingly more mainstream," he said. "In the early days of the specialty equipment industry, our customers were primarily enthusiasts interested in racing and performance. Today, more and more accessories are being purchased by non-enthusiast consumers. They are choosing to spend their discretionary dollars on automotive products. Our vendors basically compete with discretionary entertainment options available to consumers."

SEMA represents the $29 billion specialty automotive industry. Founded in 1963, the trade association has 5,200 member companies. It is the authoritative source of research, data, trends and market growth information for automakers and the specialty auto products industry. The industry provides appearance, performance, comfort, convenience and technology products for passenger cars, minivans, trucks, SUVs, crossovers, and recreational vehicles. For more information, contact SEMA at 1575 S. Valley Vista Dr., Diamond Bar, CA 91765-3914: call 909/396-0289; or visit www.sema.org.