Export biz to see growth, says Wheels India chairman

CHENNAI: Wheels India anticipates some growth in its exports business on the back of its strong relationships with global OEMs, said its chairman S Ram to the shareholders at the company’s 64th AGM conducted via video conferencing on Wednesday.

In FY23, the demand for Commercial Vehicles (CVs) was driven by the government’s infrastructure drive, higher utilisation of fleets and replacement demand. There were also some structural changes in the sub-segments of the CV industry to align with load rating changes that happened prior to the pandemic and higher horsepower vehicles in some segments.

Noting that there was strong growth in the bus segment in the latter part of FY23, Ram said “This year, there is expected to be some growth in the goods segment of the CV industry and strong growth in the bus segment driven by a modernisation drive by STUs and strong demand for buses for the school/office segment. This should benefit demand for Wheels India’s wheels and air suspension systems.”

The company will also start supplying cast aluminium wheels to OEMs in the latter part of the year and ‘we expect the demand for the company’s steel and aluminium wheels to grow’.

He said the supply of wheels and fabrications to the construction equipment industry saw strong growth in FY23 driven by both domestic and export demand. The demand is expected to grow at a more moderate level in the coming year.

Wheels India, which started operations at a plant machining large hub castings for the wind turbine industry near Chennai in FY23, is expected to turn profitable in the coming year.