A new strategic agreement has emerged between Wheels India Limited and Tokyo's Topy Industries via the Technical Assistance Agreement. The main aim of this agreement is to boost Wheels India's designs, development and manufacturing skills in the aluminium alloy wheels market. Toby Industries, as part of the agreement, will be providing the company with cutting-edge technical know-how and engineering support. This will be beneficial for Wheels India to solidify its standing in the cast aluminium wheel industry.
A globally recognised wheel manufacturer, Topy Industries, has gained over 100 years of experience and, in this partnership, will be providing advanced technologies related to aluminium wheels. This collaboration will support in understanding the latest technical know-how and further boost the edge in the rapidly expanding alloy wheel market.
Within the aluminium alloy wheel market, Wheels India made its debut in FY21 after launching a cutting-edge manufacturing facility in Thervoy Kandigai, which is on the outskirts of Chennai. Within the initial phase, the company aimed to export alloy wheels to the US and European aftermarket. But, after it shifted its interest to the domestic market, it started to supply aluminium wheels to Indian OEMs like Tata Motors and Stellantis.
After this agreement, the company has been able to successfully land new orders from the leading automakers like Hyundai and Volkswagen. After acquiring these new orders, deliveries are deemed to start from the next year by the organisation. This marks an important milestone achieved by the firm within the expansion strategy of the domestic alloy wheel segment.
Srivats Ram, the Managing Director of Wheels India, stated, "This agreement is expected to bring in considerable technical expertise in the aluminium wheel segment for Wheels India. We are confident that this agreement will also help us win new businesses and bolster our competitive advantage in the cast aluminium segment."
He further added, "Through this agreement, we are hoping to make fresh inroads into the Japanese OEMs in India in the alloy wheel segment."
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To continue to meet the rising demand, the Indian firm has been making ways to extend its annual capacity at the alloy wheel plant located in Thervoy Kandigai from 500 thousand wheels to 700 thousand wheels. The expansion is expected to be completed by the end of the next quarter.
This provides a positive outlook for the aluminium wheels as the company is planning for a further capacity increase up to 1 million wheels per year within its next phase, which is eyed by the firm to be completed by the end of FY27. This expansion will strengthen the firm's long-term growth in the market.
Apart from this partnership, Wheels India has already established a joint venture with Topy Industries within the steel wheels sector through WIL Car Wheels Limited, where it holds a 74 per cent equity stake. This partnership supplies steel wheels to Japanese OEMs in India and has helped the company forge strong ties with global automobile manufacturers.
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