Automotive wheel rims manufacturer Steel Strips Wheels Limited’s (SSWL) total wheel rim sales dropped by 27pc to 925,000mt, compared to 1.25mn mt in July 2019, according to a company release. On month on month basis, the company’s sales volume grew by 43pc and is expected to maintain an uptrend in sales till September 2020.
Alloy Wheel segment clocked the highest volume of sales ever in July. Moreover, from August onwards, its Mehsana plant is likely to run at 90pc utilisation, while tractor segment remained at almost 100pc utilisation, an all-time high. The volumes rose by 15pc from the prior year month.
|Segment||July (Y-o-Y)||July (M-o-M)|
In July, passenger car segment volumes grew by 74pc from the prior month but declined by 13pc from the prior year period. The company expects the volumes to maintain its uptrend in the coming months and reach pre-COVID levels by Q2FY2020 (July-Sep).
Two- and Three-wheelers segment registered a 68pc fall in sales volume, compared to the prior year month as the segment focused to clear off the previously piled up inventory. However, the volumes grew by 403pc from the prior month and the company looks to boost production by Q3FY2020.
Exports volume slid by 3pc from the prior year due to COVID-19 related logistics disruption, but forecasts an improvement by August backed by high levels of export orders. The company also expects volumes to trend up and maintain 25pc growth in the time ahead.
Commercial Vehicle segment is expected to remain under pressure for some more time as it continues to face COVID-19 related challenges. In July, the volumes fell by 53pc, compared to the prior year.