MSSL’s supplies to Volkswagen group firm Audi accounts for 21% of net sales, Porsche 4% and Seat 9%
New Delhi : Shares of Motherson Sumi Systems were hit for the second session even as the company tried to soothe investor concerns that the decision of its biggest client Volkswagen Group to recall vehicles in US will not affect the company. The auto component maker said its supplies to Volkswagen (VW) will not be affected even as the German auto major faces fine of up to USD 18 billion in the US for using device to falsify emissions data, reports PTI.
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 VW emissions scandal in the US. Its shares fell 7.72 % further on Tuesday closing at Rs 241.90 on the BSE.
The stock has fallen over 14 % from its closing on Friday last week. “The reaction is over exaggeration,” Motherson Sumi Systems Ltd CFO G N Gauba told PTI. “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 MSSL’s exposure to the VW brand is only 12 % of its net sales, which stood at Rs 34,490.31 crore for the year ended March. MSSL’s supplies to Volkswagen group firm Audi accounts for 21 % of net sales, Porsche 4 % and Seat 9%.
The US Environmental Protection Agency accused VW of installing illegal software to cheat emission tests in diesel cars. VW has been ordered by the US government to recall 4.82 lakh cars of VW and Audi brands produced since 2009.
