Shares of Tata Motors fell 4.8 per cent to its lowest since June 2014 on Wednesday following worries over China's economic growth.
Shares of Tata Motors fell 4.8 per cent to its lowest since June 2014 on Wednesday following worries over China’s economic growth. At 12.47, Tata Motors shares were trading down 6.38 per cent at Rs 404.25 on BSE. It is down 6.33 per cent on NSE. The share opened at Rs 425.50 on Wednesday.
The benchmark BSE Sensex in mid-session tanked over 500 points and the NSE Nifty cracked the 8,400-mark after Chinese shares extended rout and fears of Greek eurozone exit hit trading sentiment.
Weak JLR sales in China battered the company’s net profit in the previous quarter.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 6.8 per cent, to 3,663.04, while the Shanghai Composite Index lost 5.9 per cent, to 3,507.19 points.
Weak demand for luxury cars as a result of slowdown in the Chinese economy, the Freelander’s phase-out and poor offtake of the locally manufactured Evoque has pulled down volumes and market share of Jaguar and Land Rover (JLR) in China.
The country contributes 25-30% of JLR’s global volumes and accounts for 30% of its profits as well. Hence, any slowdown in China will have an adverse impact on JLR and consequently its parent firm Tata Motors.
China is the most important country for JLR after the UK.
(With inputs from Reuters)