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Compact Performance Car Market Tops $756 Million

6 April 2000

Compact Performance Car Market Tops $756 Million

      Estimated at $100 Million in '97, Specialty Equipment Products For
            Imports & Sport Compacts Raced to New Heights in 1999


    DIAMOND BAR, Calif., April 5 Everyone in the automotive
specialty equipment industry knew the import and performance compact market
was the fastest-growing segment of the aftermarket.  They just didn't know how
fast.  Now they'll know.  A report released today by the Specialty Equipment
Market Association (SEMA) reveals staggering statistics:  This market niche
jumped from an estimated $100 million in 1997 to a whopping $756 million (at
retail level) in 1999, an increase of 152 percent.
    "This is the hottest segment of the industry," said SEMA President Charles
R. Blum, "and the numbers confirm it.  A few years ago we referred to this
dynamic segment as the 'hot rodders of the future.'  It's quite obvious the
future has arrived."
    "There are several reasons for the explosive growth in this market,"
explained Jim Spoonhower, SEMA VP, Market Research.  "It's all based on kids
customizing and personalizing their front-wheel-drive cars with larger wheels
and tires, wild body kits and graphics, exhaust products, suspension
modifications, performance products and elaborate sound and security systems.
It's a trend we saw developing here in Southern California back in the early
'90s.  It really snowballed across the country.  Now there's more magazines
covering the niche and more import drag racing sanctioning bodies and events.
While the Honda Civic and other imports are still the vehicles of choice in
this segment, domestic manufacturers such as Ford with the Focus and Escort,
and DaimlerChrysler with the Neon, have helped broaden the market further."
    Spoonhower also added that while the compact performance market is
dominated by males, women's interest is growing.  "Our numbers show that women
make up almost 18 percent of the niche, much larger than some other segments."

    SEMA is a Diamond Bar, California-based trade association with more than
3,900 corporate members that make up the $21.2 billion automotive specialty
equipment industry.  SEMA has satellite offices in Japan, Europe, Mexico,
Australia and Washington, D.C.
    For more on SEMA, visit http://www.sema.org and http://www.enjoythedrive.com.