Moneycontrol

Budget 2021

Associate Partners:

  • SMC
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  • Volvo

Moneycontrol

Budget 2021

Associate Partners:

  • SMCSamsungVolvo
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Auto stocks tank nearly 9% as coronavirus outbreak disrupts supply chains

Other laggards included Ashok Leyland dropping up to 6.77 percent, Mahindra and Mahindra 3.18 percent and Bajaj Auto 2.13 percent.

February 28, 2020 / 04:10 PM IST
Representative Image

Representative Image

BSE-listed auto stocks plummeted nearly 9 percent on Friday as supply chain disruptions due to coronavirus outbreak dented the outlook of the industry, which saw its worst-ever sales decline in two decades recently. BSE auto index fell 3.21 percent with Tata Motors losing up to 8.93 percent.

Other laggards included Ashok Leyland dropping up to 6.77 percent, Mahindra and Mahindra 3.18 percent and Bajaj Auto 2.13 percent.

Maruti Suzuki India was trading with 1.06 percent losses.

TVS Motor Company, MRF, Hero MotoCorp, Eicher Motors, Apollo Tyres were also trading in red.

The domestic auto industry is likely to be negatively impacted and see a disruption in supply chain if the coronavirus epidemic in China and South-East Asia persists longer, rating agency Icra had said last week.

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According to the Association of Indian Forging Industry (AIFI), China is one of the leading suppliers of auto components in India, accounting for 27 percent of the total exports, and the slowing supply of components manufactured there would result in shortage of stocks here.

Quoting reports, AIFI said that the impact of the supply disruption will be more profound on passenger vehicles, commercial vehicles and two-wheeler segments.

Currently, the original equipment manufacturers have reduced their production plan for February and March due to non-receipt of components, it added.
PTI
first published: Feb 28, 2020 02:00 pm

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