“Since the festive season, demand for passenger cars and two-wheelers have shown steady growth and we expect the momentum to continue in 2021. A number of orders will see fruitation in coming months and expansion of capacity is required”, he said.
Further, its proposed facility at Bawal (Haryana) that got stuck due to the outbreak of the COVID pandemic last year will be finished this year. Focused on producing electronic components, construction work at the Bawal facility has resumed and the plant will be ready by April, said Sahni.
With the addition of Bawal facility, the group will have 33 facilities across eight states, employing 9,000 staffs.
While the initial impact of the pandemic and the lockdown impacted its sales during the first three months of 2020-21, Sahni says, Lumax has managed to cover some ground in the past few months. “The first quarter was a total washout, which would have reflected a 25 percent decline in topline. But we now anticipate that total revenue for 2020-21 will be 16 percent lower than the previous year”, he said.
As sales of entry-level, premium hatchbacks and two-wheelers with capacity of less than 150CC are on the rise, better demand is expected to improve its revenues in 2021-22. According to Sahni, by March, 2022, the Rs 2,900 crore group may manage to regain the topline number for 2018-19, when the slide in auto sales began.
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