This is probably the first company to issue a Press Release about the impact of corona virus. TVS Motors stated that the outbreak of pandemic Coronavirus (COVID-19) has led to impact on supply of certain components for production of BS-VI vehicles.
China is a key part of the global automobile supply chain. While TVS Motor’s direct dependency on China is limited for components, some Tier II suppliers have been impacted adversely which will lead to 10% drop in the planned production in February 2020. The company said that it is taking all efforts to normalise this at the earliest.
Commenting on this development, Mr. KN Radhakrishnan, Director & CEO, 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. Parallelly, we are also exploring suppliers in other regions and are looking to localise within India. As a customer-centric organisation, our endeavour is to ensure that the impact on our customers and operations is minimal.”
The market is perturbed with this development and the stock price, which had closed yesterday at Rs.437.50, opened lower today at Rs.429.60 and went down to an intraday low at Rs.409.75.