Sigle digit growth a cause for concern, says industrialist
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There was likely a single digit growth next year in the car, truck and tractor segment in the country, which is concern for the industry, a top official of the leading manufacturers of steel wheels for automobile industry said on Monday.
"Looking at the next year, we are expecting GDP growth at 6.5 per cent to 6.8 per cent. This would translate into single digit growth in the car, truck and tractor segment in India. This is a concern as inflation remains at high levels and intense competition means that it will be a struggle to build adequate incremental volume build up to overcome the cost increases," Srivats Ram, managing director, Wheel India, told agencies here.
He said like last years, the commercial vehicle industry had a large part of its sales in Q4 this fiscal also. However, the tractor industry has visibly slowed down during the quarter and this was a cause of concern.
Wheels India, which makers wheels for passenger cars, utility vehicles, trucks, buses, agricultural tractors and construction equipment, would be investing over Rs 70 crore 2012 with an aim to expand its exports segment.
A significant part of the investment would be for expansion of its presence in the exports market.
The company has manufacturing plants at Padi and Sriperumbudur in Tamil Nadu, Pune, Rampur, Bawal, and Pantnagar with a combined overall annual capacity of 15 million wheels, he said.
He said while over 80 per cent of the company’s business came from domestic market, the company exports wheels for off-road construction equipments and agricultural applications to Japan, Korea, US, Brazil, Belgium, South Africa, China and Indonesia.
Earlier in fiscal 2012, Wheels India entered into a technical agreement with Topy Industries, a leading Japanese steel wheel manufacturer, towards process, design and development of steel passenger car wheels.
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