Aluminium wheel manufacturing is becoming a larger growth priority for Wheels India as the company prepares to raise monthly production capacity from 80,000 units to 1.3 lakh units by the end of March 2027.
The expansion, backed by an investment of around Rs 200 crore, comes as the manufacturer expects growth to continue in the second half of FY27.
The planned increase points to a more substantial role for cast alloy wheels in its business, beyond the near-term demand recovery.
It also raises questions about customer demand, production scale, technology and the economics of automotive component manufacturing in India, and profitability.
Wheels India's planned capacity expansion reflects its growing focus on the cast aluminium wheel segment, which management expects to remain an important growth driver over the coming quarters.
During its Q2 FY27 earnings call, Chairman and Managing Director Srivats Ram indicated that the company was increasing monthly production capacity from 80,000 units to 1.3 lakh units by March 2027.
The expansion requires approximately Rs 200 crore in capital expenditure, according to the company's management. The planned increase represents a 62.5 per cent rise over the existing monthly capacity.
At the proposed level, the facility would be capable of producing approximately 15.6 lakh wheels annually, compared with its existing annualized capacity of 9.6 lakh units, assuming full utilization.
This aluminium wheel manufacturing investment also comes as the company works towards improving the financial performance of the business.
Management indicated that the segment had already achieved positive EBITDA and was expected to become profitable at the profit-before-tax level from December 2026.
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The expansion comes amid opportunities in automotive wheel manufacturing in India, particularly as vehicle manufacturers look to diversify their component sourcing and product offerings.
Cast aluminium wheels are used across passenger vehicle applications and offer advantages such as lower weight compared with conventional steel wheels.
Wheels India has been strengthening its position in this segment through investments in manufacturing capabilities and technical collaboration.
In December 2025, the company signed a technical assistance agreement with Japan's Topy Industries for the design, development and manufacture of aluminium alloy wheels.
The agreement is expected to provide access to technical expertise and support its product development capabilities.
The company has also been developing relationships with domestic vehicle manufacturers, creating opportunities to expand its presence in the passenger vehicle component supply chain.
The investment highlights Wheels India's broader strategy of strengthening its automotive component manufacturing capabilities while improving the contribution of its newer businesses.
The company has outlined FY27 capital expenditure of approximately Rs 400 crore to Rs 450 crore, covering investments across automotive steel wheels, cast aluminium wheels, air suspension systems, hydraulic cylinders and industrial products.
This indicates that the aluminium wheel manufacturing expansion forms part of a wider effort to increase production capacity across multiple business segments.
Wheels India's investment highlights the growing importance of specialized component manufacturing within India's automotive supply chain.
As vehicle manufacturers expand their product portfolios and introduce new vehicle platforms, suppliers with established engineering, casting and machining capabilities could find opportunities to increase their participation in domestic and export markets.
The success of the investment will ultimately depend on how effectively the company converts additional manufacturing capacity into consistent volumes and improved profitability.
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