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Brexit fears singed auto component maker Motherson Sumi on Friday, with the stock tumbling 8.5 per cent. Through its group company, Motherson has a manufacturing facility in the UK which caters to British customers such as Jaguar Land Rover. It supplies 100 per cent of the mirror requirements for JLR from here. Hence, any slowdown in JLR’s European business could have a trickle down effect on Motherson.
The company has many other production facilities across Europe, including countries such as France, Spain, Portugal, Germany, Slovakia and Czech Republic. It caters to a wide clientele that includes European automakers such as Volkswagen, Audi, Daimler. Hence, uncertainties arising from Brexit could impact the company’s business prospects in the region. Motherson Sumi could also be affected by any slowdown in the already fragile economic growth in the European geography. It receives 50-60 per cent of its consolidated revenues from the Europe and UK.
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