Quick Takeaways
- Steel Strips Wheels secures board approval to significantly scale alloy wheel and aluminium component manufacturing in Gujarat.
- The expansion strengthens domestic capacity to meet rising OEM demand and support vehicle lightweighting trends in India.
On December 26, 2025, Steel Strips Wheels alloy wheel expansion plans were formally approved as the company’s board sanctioned an 11-month lease agreement with its wholly owned subsidiary, AMW Autocomponent Limited, for a large manufacturing site in Gujarat. The leased facility spans 288,793.19 square meters and is located along the Bhuj–Bhachau Road near Kannaiyabe village in Kachchh district.
The agreement involves a monthly lease rental of INR 4.5 million and includes provisions for extension, allowing operational continuity as production scales up. This move reflects Steel Strips Wheels’ strategic focus on strengthening domestic manufacturing capabilities to address rising demand from passenger vehicle manufacturers.
Steel Strips Wheels alloy wheel expansion to boost capacity
Under the approved plan, the subsidiary will establish new production units dedicated to alloy wheels with an annual capacity of 7.2 million units. In parallel, the facility will manufacture aluminium steering knuckles with a planned annual capacity of 0.6 million units, supporting the company’s broader lightweighting strategy.
Investment and timeline details
The overall capital expenditure for the project is estimated at INR 4.2 billion. The manufacturing setup is targeted for completion by the fourth quarter of FY 2026–27, aligning capacity readiness with anticipated market demand.
Meeting lightweighting and OEM demand
The expansion is designed to cater to increased requirements from existing customers while supporting the growing adoption of aluminium steering knuckles in domestic passenger vehicles. Lightweight components are increasingly critical for improving fuel efficiency and meeting evolving regulatory and performance expectations.
With this expansion, Steel Strips Wheels strengthens its long-term manufacturing footprint while positioning itself to capitalize on higher aluminium content per vehicle across the Indian automotive market.
The agreement involves a monthly lease rental of INR 4.5 million and includes provisions for extension, allowing operational continuity as production scales up. This move reflects Steel Strips Wheels’ strategic focus on strengthening domestic manufacturing capabilities to address rising demand from passenger vehicle manufacturers.
Steel Strips Wheels alloy wheel expansion to boost capacity
Under the approved plan, the subsidiary will establish new production units dedicated to alloy wheels with an annual capacity of 7.2 million units. In parallel, the facility will manufacture aluminium steering knuckles with a planned annual capacity of 0.6 million units, supporting the company’s broader lightweighting strategy.
- New alloy wheel production capacity of 7.2 million units per year alongside aluminium steering knuckle capacity of 0.6 million units annually.
Investment and timeline details
The overall capital expenditure for the project is estimated at INR 4.2 billion. The manufacturing setup is targeted for completion by the fourth quarter of FY 2026–27, aligning capacity readiness with anticipated market demand.
Meeting lightweighting and OEM demand
The expansion is designed to cater to increased requirements from existing customers while supporting the growing adoption of aluminium steering knuckles in domestic passenger vehicles. Lightweight components are increasingly critical for improving fuel efficiency and meeting evolving regulatory and performance expectations.
With this expansion, Steel Strips Wheels strengthens its long-term manufacturing footprint while positioning itself to capitalize on higher aluminium content per vehicle across the Indian automotive market.
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