Strong growth expected in bus segment this year: Wheels India

Chennai: Wheels India, manufacturer of wheels for trucks, tractors, passenger vehicles and construction equipment, expects the bus segment to post a strong growth during the current financial year, a top official said on Wednesday.

The company also expects 'some growth' in the goods segment of the commercial vehicle industry, Wheels India Ltd chairman S Ram said here.

The demand for commercial vehicles was driven by the government's infrastructure drive, higher utilisation of fleets and replacement demand in FY23, he said while addressing the shareholders virtually, during the 64th annual general meeting.

"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 modernisation drive (undertaken) by the STUs (state transport undertakings) and strong demand for buses for the school/office segment. This should benefit demand for Wheels India wheels and air suspension systems," he said.

On the cast aluminium wheels business, he said the company would commence supplying cast aluminium wheels to original equipment manufacturers (OEMs) during the latter part of the year.

"We expect the demand for the company's steel and aluminum wheels to grow," he said.

The supply of wheels and fabrications to the construction equipment industry witnessed strong growth in FY23, he said and the demand is expected to grow at a 'more moderate level' in the coming year.