Wheels India, part of the TVS Group, held its 58th Annual General Meeting on August, 10, 2017. Addressing stakeholders present at the meeting, S Ram, the chairman announced the company’s ambitious plans to increase its growth.
The chairman pointed out while the Indian economy grew by 7.1 percent in 2016-17, the three major initiatives – Demonetisation, BS III to BS IV transition and implementation of the new GST (Goods and Services Tax) regime – launched by the government in past eight months seemed to have distinctive setbacks for its segment of customer base.
As the changes in the emission norms affected the CV segment, with pre-purchase decisions by customers, and manufacturers ramping up production capacity to meet demand resulting in low volumes in the initial months. The company does not expect any growth in the CV segment for the year.
With the demand for steel rims being subdued despite strong performance in the passenger and light vehicle segment, due to increase demand for aluminium wheels, that seemed to be fitted in every fourth vehicle.
“Strong monsoons spread across the country is expected to help grow the agricultural economy and strong growth expected in the tractor market. On the other hand the demand for construction and mining equipments that saw declines in the last few years is expected to pick in the coming year,“ said an optimistic Ram.
Speaking to the gathering, Ram said, “We will be expanding manufacturing capacity for forged aluminium wheels in the second half of the coming year to meet increased requirements from truck, trailer and defense equipment manufacturers.”
He also mentioned how the company had seen an uptick in demand for the air-suspension business especially with strong demands for buses from state transport corporations. Wheels India is also expecting growth in the lift air suspension systems that are fitted on multi-axle trucks as it widens its customer base.
In June, 2017 the company formed a JV with Topy Industries of Japan, the company is looking at exploring export opportunities for its wheel development for global vehicles, along with its partner.