In an interview with CNBC-TV18, Vivek Chaand Sehgal, Chairman, Motherson Sumi Group, said that the Russia-Ukraine war does not affect demand much. He explained that the effects of the war are unfortunate but he takes solace in the fact that shareholders of the company are aware of what such events bring in tow and that their impact is beyond one’s control. However, he mentioned that demand from North America has been steady.
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He said, “Motherson is not in Ukraine; we have a very small plant in Russia, 2 plants there, but no impact on Motherson per se, but a lot of suppliers which have plants in Ukraine have been hit.”
“Many things are affecting this sector at the moment but that’s normal, that’s everywhere and the original equipment manufacturers (OEMs) are aware of that. I am sure that there is going to be some sort of a way to mitigate this expense,” said Sehgal.
He highlighted that margin will be hit because of rising energy costs. However, in the larger context of safety and security, it doesn’t matter, he said.
Also Read: Red flags for auto sector: Russia-Ukraine war to elongate semiconductor shortage; metal, crude oil prices worrying
Watch the video for the full interview.