Tata Motors share price plunges to 7-year low after Jaguar Land Rover reports weak September sales

By: | Updated: October 9, 2018 3:27 PM

Tata Motors share price: The stock has fallen 50.83% this year as of its previous close.

Tata Motors share priceTata Motors share price plunged by 19.80% to an intra-day low of Rs 170.30 per share on the National Stock Exchange.

Tata Motors share price plunged nearly 20% to a seven-year low on Tuesday after its wholly owned subsidiary Jaguar Land Rover reported weak sales numbers in September. Shares of Tata Motors plunged by 19.80% to an intra-day low of Rs 170.30 per share on the National Stock Exchange, the lowest level in nearly seven years. Tata Motors stock has fallen 50.83% this year as of its previous close.

Tata Motors shares witnessed their worst fall since October 2012, hitting the lowest level since January 2012. Tata Motors remained the top drag on the NSE Nifty index on Tuesday and the top percentage loser on the Nifty Auto Index. At the time of reporting, Tata Motors share price was quoting at Rs 186.15 per share on the NSE, down 12.34%.

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Tata Motors-owned Jaguar Land Rover (JLR) on Monday reported a 12.3% decline in global sales at 57,114 units in September, hit by lower demand in China. In a statement, Tata Motors said the company’s sales in China declined by 46.2% during September as compared to the same month last year as consumer demand was held back by ongoing market uncertainty resulting from import duty changes and continued trade tensions.

The statement said Jaguar brand vehicles sales were up 4.4% at 19,146 units in September, while Land Rover range posted sales lower by 18.8% at 37,968 units in the month. JLR Chief Commercial Officer Felix Brautigam said in the statement that customer demand in China has struggled to recover following changes in import tariffs in July and intensifying competition on price, while ongoing global negotiations on potential trade agreements have dampened purchase considerations.

Morgan Stanley said the slowdown in sales was broad-based, across regions and models, and China remained the weakest market for JLR. Media reports also said that JLR will close its Solihull plant for two weeks later this month as sales fell in China due to import duties and a trade war with the US.

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