Wheels India expects export momentum to remain strong this fiscal
CHENNAI : The positive trend for export of auto parts continues even as the domestic vehicle market is in the process of recovery, said S Ram, Chairman of Wheels India.
“The growth in the global economy and opportunities in front of the company are likely to ensure that this positive trend will continue. While our export business will grow, the domestic business should recover in the second half of the year,” said Ram while addressing shareholders at the 62nd AGM, virtually.
One of the important developments in FY21 was that the company had been able to increase its exports as a percentage of its sales to over 25 per cent,” he added.
He was of the view that the passenger vehicle market would show reasonable growth this year. “The increasing adoption of aluminium wheels on passenger vehicles will limit the growth of steel passenger car wheels. Wheels India has started production of cast aluminium wheels at the new plant in Thervoy Kandigai, near Chennai and started export of these wheels to the US market. Also, we are seeing a strong demand for forged aluminium wheels in export markets,” he added.
Tractor on strong ground
The company expects agri equipment such as tractors to maintain growth momentum during this fiscal. “We see an opportunity for Wheels India to grow in its export of tractor wheels this year,” he added.
The construction equipment market where Wheels India is a supplier of wheels globally too is likely to grow this year.
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However, air suspension business had been badly affected in FY21 due to the pandemic and the reluctance of people to use mass transport. “The bus segment’s recovery would depend to a great extent on how effectively the third wave is managed in our country,” he felt.
Wind energy business
Wheels India has become an important supplier to the global wind energy business, manufacturing a number of structural components to the industry.
The company, a leading manufacturer of wheels for trucks, buses, agricultural tractors, construction equipment, utility vehicles and passenger cars with an overall annual capacity of 10.3 million wheels, has made significant investments in new growth areas and hopes to benefit from that with the return to growth this year.
Source : The Hindu Business Line