TVS Motor share price: Coronavirus dents TVS Motor’s supply chain; shares slip 5%

Shares of TVS Motor Company cracked over 5 per cent in Tuesday’s early trade after the company on Monday said that the coronavirus outbreak has impacted supply of certain components, thereby affecting about 10 per cent of its planned production for February.

The scrip traded 5.58 per cent down at Rs 413.10 at around 9.20 am, while the benchmark BSE Sensex was up over 100 points at 40,483 at around the same time.

The novel coronavirus (COVID-19) pandemic has led to an impact on the supply of certain components for the production of BS-VI vehicles, TVS Motor said in a regulatory filing.

“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 per cent drop in the planned production in February 2020,” it said.

All efforts are to normalise this at the earliest, it added.

KN Radhakrishnan, Director and CEO, TVS Motor said, “We have completely transitioned to BS-VI in the month of January 2020. To minimise the impact on the production of BS-VI vehicles, we are consistently monitoring developments with those of our suppliers who are sourcing certain components from China.”