The European Union has imposed definitive anti-dumping duties on steel road wheels imported from China following the completion of an expiry review. This trade protection measure represents the EU's continued efforts to address unfair pricing practices in the steel wheel import market.

Trade Protection Measures

The anti-dumping duty implementation comes after a thorough expiry review process, which typically evaluates whether existing trade measures should be continued, modified, or terminated. The EU's decision to impose definitive duties indicates that the review concluded dumping practices were likely to continue or recur if protective measures were not maintained.

Impact on Steel Wheel Trade

The definitive anti-dumping duty specifically targets steel road wheels, a critical component in the automotive and transportation industries. This measure is designed to level the playing field for European manufacturers by addressing price distortions caused by allegedly dumped Chinese imports.

Regulatory Framework

Anti-dumping duties are implemented under World Trade Organization rules when imported goods are sold at prices below their normal value in the exporting country, causing material injury to domestic industry. The expiry review process ensures that such measures remain justified and proportionate to the identified trade concerns.

The implementation of these definitive duties reflects the EU's commitment to maintaining fair competition in the steel road wheel market while protecting its domestic manufacturing base from unfair trade practices.

Steel Strips Wheels Limited has received rating affirmation from India Ratings and Research (Ind-Ra) for its bank loan facilities, with the rating agency maintaining its IND AA-/Stable outlook while assigning ratings to additional credit limits. The development reflects the company's strong operational performance and market positioning in the automotive components sector.

Rating Details and Actions

India Ratings has taken the following rating actions on Steel Strips Wheels' bank loan facilities:

The rating agency noted that the affirmation reflects SSWL's strong market position as an alloy and steel wheel rim manufacturer, sustained improvement in revenue, and resilient operating profitability with rangebound EBITDA margins. Additionally, there is an increased share of higher-margin business from alloy wheels in the overall revenue mix.

Financial Performance and Growth Trajectory

Steel Strips Wheels demonstrated robust financial performance with revenue growing 16.1% year-on-year to INR 37,082 million in 9MFY26, compared to INR 44,290 million in FY25 and INR 43,571 million in FY24. The growth was driven by increased alloy wheel sales, recovery in demand across domestic auto segments following the implementation of Goods and Services Tax 2.0 in September 2025, and the company's ability to add new customers while increasing business share with existing clients.

India Ratings expects revenue to increase 5%-7% year-on-year in FY26 due to the ramping up of alloy wheel segment capacity to 5 million units in FY26 from 4.2 million units in FY25, and knuckle capacity expansion to 0.5 million from 0.25 million units.

Market Position and Operational Strengths

Steel Strips Wheels maintains a strong market position across multiple automotive segments. The company holds significant market shares including 34% in passenger vehicles, 52% in medium and heavy commercial vehicles, 42% in tractors, 35% in off-the-road segment, and 39% in two- and three-wheelers for steel wheel rims.

The company operates with a total installed capacity of 5 million units as of 1HFY26, up from 4.2 million units in FY25, and operated at approximately 80% capacity utilization in FY25. The revenue contribution from higher-margin alloy wheel rims increased to 36% in 1HFY26 from 32% in FY25 and 28% in FY24.

Credit Metrics and Financial Position

Despite stable EBITDA levels at INR 3,604 million in 9MFY26 compared to INR 4,843 million in FY25, the company's adjusted net leverage deteriorated to 3.2x as of 9MFY26 from 2.8x in FY25, primarily due to increased debt for capacity expansion in alloy wheels and aluminum knuckles. The rating agency noted that credit metrics remained elevated with net adjusted leverage exceeding 2.5x over FY24-FY25 amid ongoing capital expenditure, and this is likely to remain above the same level over FY26-FY27.

Expansion Plans and Future Outlook

The company has ambitious expansion plans with incremental capacity additions planned at its Bhuj plant in Gujarat. The alloy capacity is expected to grow by 1.2 million units to be executed in two phases over FY27-FY28. Steel Strips Wheels plans to undertake incremental capital expenditure of approximately INR 4,300 million for alloy wheels and INR 1,400 million for knuckles at the Bhuj plant over FY26-FY27.

India Ratings expects FY27 revenue to exceed INR 50,000 million, supported by capacity expansions and the company's strong customer relationships with major automotive manufacturers including Hyundai Motor India, Mahindra & Mahindra, Tata Motors, and KIA Motors India.