Large private sector investments are set to reshape India’s railway wheel manufacturing industry, long dominated by public sector manufacturers. New projects by Jupiter Wagons and the Titagarh Rail Systems-Ramkrishna Forgings joint venture (JV) are expected to boost domestic manufacturing over the next 2-3 years, which could not only help break the public sector’s near-monopoly in a segment but may also make India a net exporter of these goods.

At present, public-sector rail wheel production is led by Indian Railways‘ Rail Wheel Factory (RWF), which produced a record 2.10 lakh wheels and 1.20 lakh wheelsets in FY26. Rail Wheel Plant (RWP), Bela had an installed capacity of 1 lakh cast steel rail wheels while SAIL’s Durgapur Steel Plant manufactures forged wheels and axles though its current installed capacity is not publicly disclosed.

In addition, Jupiter Wagons currently machines and assembles around 2,000 wheelsets every month at its Chhatrapati Sambhajinagar facility, making it the only private player to supply wheelsets.

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According to industry sources, India imported more than 50,000 wheelsets from China alone last year. Passenger wheels for Vande Bharat trains, metro coaches and other modern rolling stock are also imported because the country lacks the domestic capability to manufacture advanced passenger wheels.

Large-scale new investments are in the pipeline. Jupiter Wagons is setting up an integrated rail wheel manufacturing facility in Odisha with an annual capacity of about 1 lakh wheelsets. Backed by partnerships with Slovakia’s Tatravagonka and Italy’s Lucchini RS, the project has annual procurement commitments of around 20,000 wheelsets each from both companies.

The plant aims to export 50-60% of its output, reducing import dependence and positioning India as a global rail wheel manufacturing hub. The project’s axle manufacturing line is expected to become operational by the end of this year while the integrated rail wheel manufacturing facility is scheduled to be fully operational by the third quarter of next financial year.

Similarly, Titagarh Rail Systems and Ramkrishna Forgings have set up a forged railway wheel manufacturing facility at Chennai. The Rs 2,000-crore JV has a planned annual production capacity of 2.28 lakh forged wheels with Indian Railways committed to procuring 80,000 wheels annually while the balance is expected to be targeted at export markets.

Vivek Lohia, managing director of Jupiter, said the timing is significant because the economics of the business are finally turning favourable. He said rail wheel manufacturing is a capital-intensive business that requires large-scale facilities to remain commercially viable.

While Railway Minister Ashwini Vaishnaw informed parliament in December 2023 that Indian Railways requires around 4.4 lakh wheels annually for manufacture and maintenance of rolling stock, the domestic market alone was until recently insufficient to justify private investments of this scale.

While PSUs primarily manufacture cast wheels for freight wagons, modern passenger rolling stock – including Vande Bharat trains, LHB coaches, and metro trains – requires high-performance wheels capable of handling higher speeds and mechanical stress.

Historically, a major chunk of these forged wheels were imported from regions like China, Europe and Russia. However, with private players now committing capital to large manufacturing facilities, the sector’s economics is beginning to shift.

According to industry estimates, India’s annual wheelset requirement could rise to over 4 lakh units by 2030, driven by the expansion of wagon, coach, Vande Bharat and metro fleets. Since each functional wheelset consists of two wheels pressed onto a single axle, a demand of 4 lakh wheelsets translates into an annual requirement of 8 lakh individual wheels.

“Wheel manufacturing requires huge capital investment, and unless a plant operates at a large scale with access to global markets, the economics do not work,” Lohia said adding that Indian Railways’ expanding fleet, the rapid proliferation of metro rail networks, rising replacement demand and access to export markets are together making investments in rail wheel manufacturing commercially viable.

“The rail wheel industry is at an inflection point. Growing demand from Indian Railways and metro projects, along with private investments, can sharply reduce import dependence. The key will be maintaining quality, safety and reliability which can eventually position India as a globally competitive exporter of rail wheelsets,” said Lalit Chandra Trivedi, former general manager at East Central Railway.

With the steady addition of rolling stock over the past few years, replacement demand is expected to emerge as a key growth driver as wheelsets undergo periodic maintenance and renewal during their operating life. Experts believe India’s competitive steel industry, low-cost raw materials, access to advanced technology and growing export opportunities could help turn the country from a net importer into a global exporter of rail wheels in the coming years.