Motherson Sumi Systems shares extends losses for the third consecutive day on Wednesday as the scrip declined as much as 5.5 per cent in the early trade on Wednesday. (Reuters)
Motherson Sumi Systems shares extends losses for the third consecutive day on Wednesday as the scrip declined as much as 5.5 per cent in the early trade on Wednesday. The company, which supplies parts such as mirrors, bumpers, dash board and door trims to various auto companies of the Volkswagen Group, has seen its shares tank in the wake of emissions scandal in the US. The share price of Motherson Sumi plummeted around 15 per cent in the past two days.
At 10.03 am, Motherson shares on BSE were trading 3.22 per cent down at Rs 234.10. It opened at Rs 230.30 and had touched a high and low of Rs 241.95 and Rs 228.50, respectively, in trade so far.
On NSE, the scrip was trading 3.47 per cent down at Rs 233.55 at the same time.
Motherson Sumi Systems on Tuesday said its supplies to Volkswagen (VW) will not be affected even as the German auto major faces fine in the US. “The reaction is over exaggeration,” Motherson Sumi Systems CFO G N Gauba said.
Stressing that the company will not be affected by the issue, he said: “The emission matter is related to engines and we do not supply any engine parts to VW. Moreover, it is not like a recall due to a part defect.”
He further said Motherson’s exposure to the VW brand is only 12 per cent of its net sales, which stood at Rs 34,490.31 crore in the year ended March 31.
Last Friday, the US Environmental Protection Agency (EPA) accused VW of installing illegal software to cheat emission tests in diesel cars.
(With inputs from PTI)
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