A number of home-grown companies have breached pre-COVID-19 levels, either in sales or production, during September, indicating that the worst may be over.
Buoyed by the recent uptick in sales, automobile firms and auto component makers are cautiously optimistic about the upcoming festive season.
Fast moving consumer goods (FMCG) company CavinKare is leading the pack, posting a 112% growth during the second quarter of the current fiscal.
“We have posted a 112% growth during the second quarter and October sales alone will be at 105%,” C.K. Ranganathan, CMD, CavinKare, said.
Royal Enfield posted 101% growth in September sales.
Ashok Leyland said it was still operating at 75% of pre-COVID-19 capacity levels.
“Each month since June has seen progressively better volumes in some segments,” said T.T. Srinivasaraghavan, MD, Sundaram Finance Ltd.
“Passenger cars probably top the list, driven by the preference for personal transportation, followed by light commercial vehicles. Tractors and farm equipment have done very well.”
Srivats Ram, MD, Wheels India Ltd., said most segments, barring medium and heavy commercial vehicles and buses have shown some signs of revival.
Most of the cement units in the South continue to operate at 75% production level and might reach 90% by the fourth quarter.