Wheels India sees CV industry growing in Q2 FY’15, targets niche applications

Wheels India, a TVS Group company and one of the leading wheel rim suppliers in India, is expecting better growth for the commercial vehicle industry starting the second quarter of the fiscal. The company, which caters to nearly all the major OEMs in India, has seen a significant fall in demand due to the prolonged downturn, more in the CV sector.

Speaking to Autocar Professional, B Rajaram, vice-president and head of operations (CVs), said, “Over the past two years, we are down about 20 percent in the M&HCV segment. We feel we have reached the bottom, as far as the CV segment is concerned. The company is operating at just 60 percent of its capacity but overall has managed decent growth mainly on back of its exposure to various other sectors such as agriculture, construction equipment, passenger cars and exports.”

According to Rajaram, Wheels India, since 2012, has been focusing more on operational excellence, cost reduction and improvement in efficiency.

“The company has done significant investment and capacities are in place now. As the industry starts to take off, we are in a better position to benefit from the upturn,” he added.

Considering that there is hardly any aftermarket in the CV wheel business, the company is focusing on to niche applications such as crane wheels in Europe and wheels for monorail. “Though the volume from these segments wouldn’t be very high, they will offer us some hedge against a downturn,” said Rajaram.       

Meanwhile, the company is actively engaged in efforts to reduce weight of its products employing flow-forming technology.

Wheels India currently supplies wheels to Tata Motors, Ashok Leyland, Mahindra & Mahindra, John Deere, Force Motors, TAFE, Volvo, and Mercedes-Benz, among various clientele. Wheels India (established in 1962) is one of the largest steel wheel manufacturers in the world. The company also manufactures air suspension kits for trucks and buses. Around 15 percent of its turnover comes from exports, particularly from the construction and earthmover equipment segment.