BackTVS Motor slumps 6% on production woes
Tier II suppliers have been hit by coronavirus which may lead to 10% drop in February productionThe company’s total two-wheeler production during April–January was at 2,670,076 units, down 16% YoY
PremiumMUMBAI : MUMBAI: Shares of TVS Motor Company fell as much as 6.3% after reports said that the coronavirus outbreak in China and beyond will hit the supply of certain components for production of BS-VI vehicles to the company.
Although TVS Motor's direct dependency on China for import of automobile components is limited, some Tier II suppliers have been impacted adversely which would lead to an estimated 10% drop in planned production in February, the company said in a notice to the exchanges.
The company is trying to normalise the situation as soon as possible.
At 11:23 am, shares of TVS Motor traded at ₹429.50 apiece on the BSE, down 2% from previous close, while the benchmark Sensex was flat at 40,397.79 points. BSE Auto index was down 0.5% at 16,683.67 points.
Commenting on likely weak sales for February, K N Radhakrishnan, director and CEO of TVS Motor, said, “At TVS Motor Company, we have completely transitioned to BS-VI in the month of January 2020. To minimise the impact on production of BS-VI vehicles, we are consistently monitoring developments with those of our suppliers who are sourcing certain components from China. The company is also exploring suppliers in other regions and are looking to localise within India. Endeavour is to ensure that the impact on customers and operations is minimal."
According to from the Society of Indian Automobile Manufacturers (Siam), TVS Motor's two-wheeler production in January saw a drop of 29% year-on-year to 201,651 units. The company’s total two-wheeler production during April–January was at 2,670,076 units, down 16% YoY. Three-wheeler production, on the other hand, rose 14% YoY to 14,742 units in January.
TVS Motor vehicle portfolio includes motorcycles of Apache Series RTR, Phoenix 125, Victor, StaR City+, Sport and Max4R, while scooter models include Jupiter, Wego, Scooty Zest 110, Scooty Streak and Scooty Pep +.
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