Steel wheels manufacturer Wheels India on Thursday said the prospects for wind energy business looked good globally and it would explore more original equipment manufacturers in the segment.

It has invested in a 'cast aluminium wheel factory' and it was expected to begin exports from September, Wheels India Managing Director Srivats Ram told the company's shareholders at the 61st annual general meeting.

"Globally, the prospects for wind energy business looked good. We have just started exports to one OEM and will explore more OEMs going forward", he said.

On the cast aluminium plant set up, company Chairman S Ram said the (current) financial year would be difficult due to declining economies in India and overseas.

"However, taking a longer term view, we have invested in a cast aluminium wheel factory that will start exports to the United States from September", he said.

The demand for the company's forged aluminium wheels in overseas markets was expected to improve in the coming year, he said.

Responding to a query from a shareholder, Srivats Ram said the impact of COVID-19 on the business was significant for the first 45 days with complete lockdown.

"In June, our capacity utilisation was around 42 per cent. Starting Q3 and Q4, we should start seeing a pick-up in business from current levels", he said.

Commenting about the decline in the passenger car market in the last financial year, Chairman Ram expressed hope market demand would shift to small cars and utility vehicles in the coming year.

He said the demand for small commercial vehicles would improve post-lockdown.

The demand for tipper lorries would depend on implementation of infrastructure projects by the government while the demand for buses would improve once public transportation resumes, he said.