Worries ahead for Motherson Sumi as tariff wars threaten global car growth

Motherson has been taking steps to diversify its risk in terms of products, geographies and segments to minimise the impact on its operations

Auto components maker Motherson Sumi has been showing a downward trend, shedding over a third of its market cap since the start of the year, 13 per cent of which has been in the last month. Given the developments in the industry, analysts say, the trend is likely to remain weak. Puneet Gulati of HSBC believes that the sharp sell-off in the stock is due to a global auto slowdown, potential tariff on its key customers and a lack of faith among investors in margin expansion. What has compounded the problems is that demand worries have come at the same