Shares of Tata Motors dropped over 3% on the domestic bourses on Wednesday after the CEO of Jaguar Land Rover (JLR) issued a warning to the UK government of massive losses if Brexit were to take place with no deal over its future trading relationship with the economic bloc. Tata Motors’ share price fell 3.07% to a low of Rs 259 per share during morning deals on Wednesday. At the time of reporting, shares of the automobile company were trading lower by 2.53% at Rs 260.45, emerging as one of the top drags on the Sensex index.
On the National Stock Exchange, shares of India’s fourth-largest passenger vehicle (PV) maker slipped 3.16% to an intra-day low of Rs 258.85 per share. Tata Motors shares had hit a 52-week low of Rs 243.10 on August 13, 2018. Speaking at the Zero Emission Vehicle Summit in Birmingham, JLR CEO Ralf Speth said fears of a so-called “no-deal” Brexit and lack of clarity over Britain’s post-Brexit plans threaten the UK-based luxury carmaker’s entire operational set-up.
“Just one part missing could mean stopping production at a cost of 60 million pounds a day. That is a huge risk. We depend on free, frictionless, seamless logistics,” PTI reported Speth as saying. Speth reiterated a previous warning over a hard Brexit scenario hitting the Tata Group-owned company’s annual profits by over 1.2 billion pounds, which might even force its exit from the UK.
The report said the JLR CEO had issued a similar statement Back in July warning the UK government against a “bad Brexit deal”. JLR, which is the UK’s largest carmaker, has witnessed a complete turnaround in its fortunes since Tata Motors acquired the traditional British brands from Ford 10 years ago. The company’s repeated Brexit interventions come in the wake of similar statements by other manufacturing giants like BMW and Airbus, warning against a “no-deal” Brexit, said the report.