The immediate effect of Brexit, where the people of UK voted to stay or walk out of the European Union, was a short drop in the value of Indian Rupee. The NSE and BSE indices also fell,but seem to be on their way to recovery. Share prices of companies like Tata Motors with considerable exposure to UK slipped. With the European Union accounting to over 36 per cent of auto component exports according to Subrata Ray, Senior Vice President, Co-head, Corporate Sector ratings, ICRA Ltd., the auto ancillaries market is likely to be impacted by volatility and slowdown in the region. The impact of a potential slowdown in the UK passenger vehicle (PV) market on direct automotive components exports from India is likely to be limited. A few Indian auto ancillaries that have set up manufacturing bases close to their customer in the European Union (including UK) to avail of the lower tariff and logistics overheads are likely to be affected. Also, those that are known to export built vehicles to Europe due to a likely slowdown. The relative depreciation of GBP and Euro may impact exporters margins.