Extending its losses for the third straight day, shares of auto component maker Motherson Sumi Systems fell by nearly 6% amid concerns related to Volkswagen, which is facing a fine of up to $18 billion in the US for using a device to falsify emissions data.
Extending its losses for the third straight day, shares of auto component maker Motherson Sumi Systems fell by nearly 6% amid concerns related to Volkswagen, which is facing a fine of up to $18 billion in the US for using a device to falsify emissions data.
The stock went down by 5.53% to hit its one-year low level of Rs 228.50 on BSE.
At NSE, shares of the company tumbled 5.66% to Rs 228.25 -- its 52-week low.
In three days, the stock has lost nearly 15%. Motherson Sumi Systems had on Tuesday said its supplies to Volkswagen (VW) will not be affected even as the German auto major faces fine of up to $18 billion in the US for using device to falsify emissions data.
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.
"The reaction is over exaggeration," Motherson Sumi Systems Ltd CFO G N Gauba told PTI. Stressing that the company will not be affected by the issue faced by VW, 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 MSSL'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, 2015.
Last Friday, the US Environmental Protection Agency (EPA) accused VW of installing illegal software to cheat emission tests in diesel cars.
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