Motherson Sumi Expects Auto-Parts Demand To Cross Pre-Covid Levels In Two Months
The company has resolved its supply chain issues, yet some of its customers continue to face them.
One of the world’s largest maker of car parts expects demand to return to levels seen before the Covid-19 outbreak in about two-three months in the 41 countries that it operates in.
“Globally we could see numbers which are similar as last year if not better, and every geography that we are seeing the numbers are getting better and better, and customer is asking for more,” Vivek Chaand Sehgal, chairman of Motherson Sumi Systems Ltd., told BloombergQuint in an interview.
The Noida-based manufacturer posted a profit of Rs 387 crore in the quarter ended September after reporting a loss of Rs 1,122 crore in the last quarter. That was a 2.7% increase over a year ago. Revenue, however, fell 1.9% year-on-year to Rs 14,957 crore.
Sehgal said that even as the company has resolved its supply chain issues, some customers continue to face them. “Supply issues on smaller companies may be there,” he said, adding there are issues with raw material procurement from countries “where we don’t want to buy from”. He expects the challenges to stabilise after the festive season.
“Overall the government has been supportive and is looking into the issues and will come up with solutions,” he said.
The company is in the midst of a restructuring of its group business through which it will demerge its domestic wiring harness business to a new entity that will eventually be listed. It’s going to be company’s top priority to finish the restructuring going ahead, Sehgal said.
Watch the full interview below: