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TVS Motor shares tank 6% as coronavirus impacts February production

China is a key part of the global automobile supply chain.

February 25, 2020 / 12:41 PM IST
 
 
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Shares of TVS Motor Company fell 6.3 percent intraday on February 25 after the coronavirus outbreak interrupted production of the company during the month.

"The outbreak of pandemic Coronavirus (COVID-19) has led to impact on supply of certain components for production of BS-VI vehicles," said the two-and-three-wheeler maker in its BSE filing on February 24.

China is a key part of the global automobile supply chain.

"While TVS Motor's direct dependency on China is limited for components, some Tier II suppliers have been impacted adversely which will lead to 10 percent drop in the planned production in February 2020. All efforts are on to normalise this at the earliest," company said.

"The company has completely transitioned to BS-VI in January," KN Radhakrishnan, Director & CEO said.

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Hence, to minimise the impact on production of BS-VI vehicles, TVS is consistently monitoring developments with those of suppliers who are sourcing certain components from China, and parallelly, it is also exploring suppliers in other regions and is looking to localise within India, he added.

The stock was quoting at Rs 430.90, down Rs 6.60, or 1.51 percent on the BSE at 1205 hours IST.
Moneycontrol News
first published: Feb 25, 2020 12:41 pm

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