Shares of Tata Motors fell as much as 5 per cent on the BSE before closing 2 per cent lower on Wednesday following JLR boss Ralf Speth›s comment on the adverse impact on business due to the coronavirus outbreak.
Jaguar Land Rover CEO Speth reportedly said that the company does not have enough parts from China to maintain its British production post two weeks from now. Speth›s comments came after Apple on Monday revised down its target for iPhone sales due to the coronavirus outbreak.
«We are safe for this week and we are safe for next week and in the third week we have … parts missing,» Speth reportedly said.
The death toll due to novel coronavirus (COVID-19) in China rose to over 2,000 on Wednesday as 136 new deaths from the disease were reported, while the confirmed cases stood at 74,185, Chinese health authorities announced.
With several industries in China on a standstill due to the coronavirus outbreak, the Confederation of Indian Industry (CII) said that the revenue of Indian companies operating in China is likely to fall by 15-20 per cent in the first two quarters of 2020 and may revive only in the third quarter.
An assessment report by the industry body said that extended holidays have reduced productivity which has a direct impact on revenues and growth. Businesses have been closed since January 24, 2020 and are expected to resume operations only by February 20, which is not certain, it added.
«Overall, companies foresee a dip in revenue by 15-20 per cent in Q1 and Q2 over the previous year. It is expected that businesses will get normalised only by Q3,» it said.