Economy

‘CV segment may recover in second half of FY22’

S. Ram. Photo: Special Arrangement  

Wheels India said it expected the commercial vehicle (CV) segment to recover during the second half of the year, albeit on a low base.

Addressing the company’s 62nd AGM, chairman S. Ram said the CV segment remained muted currently and was expected to post some recovery during the second half.

Similarly, the passenger vehicle market is expected to show reasonable growth this year, he added. Mr. Ram also said he expected the agri-tractor market to sustain the growth momentum this year along with the construction equipment market. “The increasing adoption of aluminium wheels on passenger vehicles will limit the growth of steel passenger car wheels,” he said.

“We have started production of cast aluminium wheels at our new plant in Thervoy Kandigai near Chennai and started exporting these to the U.S. Also, we see a strong demand for forged aluminium wheels in export markets,” he added.

Mr. Ram said that last year, the air suspension business was badly affected due to the pandemic and the reluctance of people to use mass transport. “The bus segment’s recovery would depend to a great extent on how effectively the third wave is managed in our country.”

During FY21, exports, in percentage of sales, grew more than 25%. “The growth in the global economy and opportunities in front of the company is likely to ensure that this positive trend will continue. While our export business will grow, the domestic business should recover in the second half of the year,” he added.


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Printable version | Sep 24, 2021 3:41:59 PM | https://www.thehindu.com/business/Economy/cv-segment-may-recover-in-second-half-of-fy22/article35732490.ece

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