Taking the brunt of the Brexit impact, auto sector lost nearly 10 per cent of their value. According to reports, Tata Motors which gets about a quarter of its volumes from the UK was among the worst affected as was auto component supplier Motherson Sumi which supplies parts to a number of luxury car makers.
While JLR sources about 40 per cent of its parts from the EU, costlier imports on higher duties will make exports uncompetitive. However, the positive would be a weaker pound which could offset some impact.
Motherson sources its parts from across the globe though both its subsidiaries accounting for over 80 per cent of revenues are based in the Netherlands. While sourcing of raw material happens in local currency, the impact either way could be on currency translation.
The other two auto companies with a major exposure to Europe are Bharat Forge at 39 per cent and Apollo Tyres getting about 30 per cent of revenues from Europe. The key issue is the impact on Europe from Brexit if it leads to fall in auto sales.