Tata Motors shares were trading over 2 per cent down on Tuesday on slowdown worries of China’s luxury car market.China is the most important country for Tata Motor’s JLR after the UK.
At 1.18 pm, the stocks were down 2.25 per cent and were trading at Rs 393.20. On NSE, the shares were down 2.18 per cent and were trading at Rs 393.35.
Tata Motors shares plunged 19 per cent on a year-to-date basis.
Analysts said that worries of a slowdown in China’s luxury market is weighing on the Tata Motors stocks.
Ambit Capital said that after witnessing a strong growth of 47 per cent CAGR over FY10-15, JLR has been reporting weak headline retail sales in China since January 2015.
Credit Suisse has removed Tata Motors from its Asian portfolio.
In the first sign that turmoil in the stock market could affect spending in the real economy, China’s automakers’ association on Friday slashed its 2015 forecast for vehicle sales growth to 3 per cent. The China Association of Automobile Manufacturers (CAAM) previously predicted combined sales for passenger and commercial vehicles to grow 7 per cent to 25.1 million this year.
With Reuters inputs