TVS Motor Company estimates coronavirus would lead to 10% drop in production for February 2020

The company, however, is trying to normalise the issue as soon as possible

In its exchange filing, the company said that its direct dependency on China for the import of automobile components has been limited. China is a key part of the global automobile supply chain. Some Tier II suppliers have been impacted adversely which would lead to an estimated 10% drop in the planned production for the month of February 2020.

The company is trying to normalise the issue as soon as possible.

Commenting on the probable weak sales data this month, K N Radhakrishnan, the director and CEO of TVS Motor Company, 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.

The announcement was made after market hours yesterday, 24 February 2020.

On Monday, 24 February 2020, TVS Motor Company declined 1.95% to end at Rs 437.50 on BSE.

TVS Motor Company is engaged in the manufacturing of motorcycles, scooters, mopeds, three wheelers, parts and accessories. The firm's motorcycles include Apache Series RTR, Phoenix 125, Victor, StaR City+, Sport and Max4R. Its scooters include Jupiter, Wego, Scooty Zest 110, Scooty Streak and Scooty Pep +. Its mopeds include XL 100, XL Super and XL Super Heavy Duty.

Powered by Capital Market - Live News