Continuing to fall for the second straight day, shares of auto component maker Motherson Sumi Systems slumped nearly 8 per cent amid concerns related to Volkswagen, which is facing a fine of up to USD 18 billion in the US for using device to falsify emissions data.
The stock plunged 7.72 per cent to settle at Rs 241.90 on BSE. During the day, it tumbled 8.58 per cent to Rs 239.65.
At NSE, shares of the company dipped 7.74 per cent to Rs 241.95.
In the previous session also the stock had lost 7.64 per cent.
Motherson Sumi Systems today said its supplies to Volkswagen (VW) will not be affected even as the German auto major faces fine in the US.
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 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, 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.
Last Friday, the US Environmental Protection Agency (EPA) accused VW of installing illegal software to cheat emission tests in diesel cars.
