"The machine of a dream. Such a clean machine. With the pistons a pumpin. And the hubcaps all gleam." The words are from the song I'm in Love With My Car, by British rock group Queen. For many car owners, truer words were never spoken. The specialty automotive market in the United States is $34 billion strong, proving that Americans are willing to spare little to no expense when it comes to gleaming those hubcaps.
One company poised to fuel car owners' love for gleam is Mizati Luxury Alloy Wheels, Inc. (MZTI.PK). As a wholesaler of luxury alloy wheels, Mizati has seen revenues grow 77 percent annually from 2003 to 2007, and that could just be the tip of the iceberg. The company is already planning to build on those strong sales with an organic growth model and targeted acquisition strategy that includes everything from tackling the off-road market to going green.
Mizati operates in the tight niche of wheels, tires and suspensions, a highly fragmented and burgeoning segment of the automotive aftermarket industry. The segment has grown at an annual rate of 7 percent from 2000 to 2006 with annual sales of almost $9 billion in 2006, according to the Specialty Equipment Market Association. Mizati is the only public company operating in this niche segment.
Mizati offers three luxury wheel lines – the trademarked Mizati, Hero and Zati lines – which are sold at over 400 retail outlets. The wheels are also sold via the internet, catalogs, and wheel and tire distributors. The wheels are designed to accommodate most SUVs and cars including BMW, Toyota, Cadillac, Mercedes, Nissan, Acura, Lincoln, Ford, and GMC. The company is already setting sights on broader markets with plans to penetrate new markets, such as the off-road, restoration, and racing, as well as other lines of aftermarket automotive accessories.
There are virtually no limits to the luxury alloy wheel market, and that includes the eco-friendly driver as well as the car owner on a budget. New popular hybrid car models include the Toyota Camry and Highlander, Chevy Malibu and Tahoe H, Mercedes ML450, and Porsche Cayenne. "All the cars mentioned here accommodate the wheels that Mizati offers, and we expect there will be more hybrid models available in the future," Chief Executive Hazel Chu said. "If getting a new car is not in the budget, rent-to-own is still an alternative way for consumers to get shiny new wheels with an affordable weekly payment plan, and this is the biggest advantage that Mizati has."
Mizati says its mission is to be the premier brand and designated source for high-quality, value-priced wheels, rims, and automotive accessories, within 5 years. With an eye for the cost-conscious consumers, a strong footing in the niche market, solid financials, and an awareness of today's green car owner who still loves a gleaming set of wheels, Mizati is well on its way to reaching that goal.
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