Samvardhana Motherson shares in focus as Volvo defers guidance for 2 years, Porsche cuts guidance

Volvo withdrew its financial guidance for this year and next due to the uncertainty sparked by US President Donald Trump’s tariffs, in a major restructuring under new Chief Executive Officer Hakan Samuelsson

German luxury carmaker Porsche has also downgraded its performance expectations. It underlined challenges in European and Chinese markets, which could possibly lead to a cut in manufacturing output.

The German manufacturer now projects return on sales to fall to as low as 6.5%, down from previous guidance of at least 10%. Porsche is one of the carmakers most exposed to President Donald Trump’s trade moves because it lacks a factory in the US.

Porsche’s vehicle sales in China plummeted 42% in the three months through March, to its worst quarterly result in the Asian nation since 2013. Intense competition from domestic carmakers led by BYD Co. is cutting deeper into the market share of Western manufacturers.

SMIL could be affected by these developments as it provides components like electrical systems, vision products, polymer parts, and integrated assemblies to both these car manufacturers.

At 2:05 pm on April 29, Samvardhana Motherson shares on BSE were trading 1.4% higher at Rs 137 apiece. the 52-week low of the stock is Rs 107.25 and 52-week high is Rs 217. The market capitalisation of the stock is Rs 96,200 crore.

With inputs from Bloomberg