Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Major auto component producers including Pricol, Lumax, Setco, Apollo Tyres and Timken have announced the resumption of production in India, after remaining shut from March 24 in the wake of lockdown order.

 

From April 20, the central and local governments have eased restrictions for selective manufacturing segments in non-COVID-19 hotspots with requisite permissions.  These companies have resumed partial operations at present.

 

Lumax has resumed partial manufacturing activities with suitable social distancing measures. The company serves major two and four-wheeler manufacturers and leading OEMs. Pricol received permissions for operations at its Pantnagar, Uttarakhand facility effective April 23. The company’s other plants, however, are yet to receive similar orders, according to a company release.

 

 Setco Automotive has also been permitted to resume operations at its plants in Gujarat and Uttarakhand. Apollo Tyres also received the government’s nod to begin partial production at Kerala effective April 21. Timken’s plant at Gujarat has received a go-ahead from concerned authorities to partially resume operations, but its plant at Jamshedpur remains shut, said the company.

 

Many auto and OEM manufacturers are prepared to resume operations in May, but there could be a disruption in the supply chain as much depends on the location of plants. The metal sector is likely to get a demand push, considering the usage of zinc, steel among others in auto parts manufacturing.  

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