Share price of Chennai-based auto companies fell after flood crippled normal life in the city. Heavy rainfall in Tamil Nadu have battered one of the country’s largest auto manufacturing hub and forced plants to shut for the second time in less than a month. According to market experts, heavy rainfall will impact domestic and export sales of Chennai-based companies.
At 12.28 pm, shares of TVS Motor Company and Ashok Leyland were trading 3.80 per cent and 0.91 per cent down at Rs 292.45 and Rs 92.50, respectively. Ashok Leyland’s Ennore plant in Chennai accounts for 40 per cent of its production. Later, TVS ended 4.87 per cent down at Rs 289.20 and Ashok Leyland closed the day 0.54 per cent down at Rs 92.85.
Sudip Bandyopadhyay, president, Destimoney Securities said, “Chennai flood will impact domestic and export sales TVS Motor company the most.”
In auto component makers, shares of Sundaram-Clayton, a Chennai based TVS Group company, closed 4.91 per cent down at Rs 2092.
TVS Motor Company on Monday reported 2.43 per cent increase in total sales at 2,25,401 units in November. In a statement TVS Motor said, “Incessant rains for the past three weeks in Chennai have had an adverse effect on company’s production during this period. The company suffered sales loss of approximately 15,000 units due to inclement weather”.