CMIE data shows that monthly exports from December 2020 onwards were the highest in the last 3 years. In such a situation, now slowly its results are starting to show.
Auto sector News
The corona pandemic has harmed everyone. Whether it is a common person or big business, all have come under the grip of this virus. In this the automobile sector also suffered a major setback. While factories had to be closed, production units also had to be reduced. Where factory utilization was 85 percent in March, it came down to 70 percent in April, while in May it got a further setback and it came straight to 55 percent.
Auto parts makers which include Wheels India, Sundaram Fasteners, Wabco, Pricol and Rane Madras are all now dependent on their export orders. With the help of this, they want to keep their production facility busy. Let us tell you that in the financial year 2022, export demand can increase by 6-8 percent and it can recover at many destinations.
According to S&P, light vehicle sales can grow by 10 percent in Europe, while it can reach 15 percent in America. In such a situation, most of the domestic auto component manufacturers are planning to increase the capital expenditure here.
The result of export pickup in India is now slowly visible. Shruti Sabu, Associate Director, India Ratings and Research said that, CMIE data shows that monthly exports from December 2020 onwards were the highest in the last 3 years. Whereas in February it was 20 percent year on year. Even after the second wave of corona in India, India, Europe and America recovered better.
The figure of Wabco exports reached 70 percent in Quarter 4 of 2021, which was only 8 percent in Quarter 2. On the other hand, Sundram Fasteners directly reached 33 percent, which was 10.5 percent in Quarter 2. The Quarter 4 International Sales of Rane Madras directly reached 74 percent from 6 percent in Quarter 2 of the year 2021.
Let us tell you that Wabco India is lining up 100 crore Capex here in FY21. It will be spent on the new export which is for Mahindra World City in Chennai. Wabco India has said that it has a huge export demand since 2 months and that too from Europe and America.
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