Coronavirus: Auto stocks skid up to 20% on production suspension
Auto stocks plunged up to 20% on Monday as companies have suspended their production due to the coronavirus outbreak.
Motherson Sumi Systems cracked 20% and Ashok Leyland fell 18%, Maruti Suzuki India (17.02%), Bajaj Auto (13.95%) and Apollo Tyres (13.86%).
Shares of TVS Motor Company settled 12.94% down while that of MRF and Eicher Motors dropped 12.34% and 11.87%, respectively, on the BSE.
Likewise, Hero MotoCorp declined 11.07%, Tata Motors (9.95%) and M&M (9.06%).
The BSE Auto Index tumbled by 13.35%.
The country's largest two-wheeler maker Hero MotoCorp on Sunday said it has suspended production at all its sites across the globe until March 31, 2020 in order to safeguard its employees against coronavirus infections.
On Monday, Maruti Suzuki India (MSI) said Suzuki Motor Gujarat has suspended production at its Gujarat-based plant to check the spread of COVID-19.
Suzuki Motor Gujarat manufactures cars on contract basis for MSI.
The company has been informed by Suzuki Motor Gujarat Pvt Ltd (SMG) that pursuant to Gujarat government directive to check the spread of COVID-19 transmission, they are closing their plant operations with effect from B-shift from March 23 through March 25, 2020, as per a regulatory filing.
Rockman Industries, the auto components arm of the Hero Group, on Monday said it has suspended all operations at its seven manufacturing facilities till March-end due to coronavirus outbreak.