Market Performance
Tata Motors' share price has experienced a significant decline, dropping over 13% in the past month and on a year-to-date basis, it dropped more than 15%. Over the past six months, the stock has fallen 41%, while the one-year decline stands at 34%. The stock is currently more than 46% below its peak, erasing approximately ₹2 lakh crore in market value.
Key Developments
On February 28, 2025, Tata Motors' stock fell over 2%, reaching a 52-week low of ₹630.15 per share on the BSE. This marks the ninth consecutive fall in the trading session, driven by weak demand expectations for Jaguar Land Rover (JLR) in major markets such as China and the UK. Additionally, the domestic passenger vehicle segment has shown signs of weakness.
Further concerns arise from the possibility of US import tariffs on European-made vehicles, which could negatively impact JLR's sales in the US. The US market contributes 25% of JLR's total retail volumes, significantly affecting the stock's performance.
Company Performance
Sales Data (February 2025 Estimates)
- Total Wholesales: Expected to decline 5.7% to 81,505 units (from 86,406 units YoY)
- Passenger Vehicle (PV) Sales: Estimated to fall 7.3% to 47,560 units (from 51,321 units YoY)
- Commercial Vehicle (CV) Sales: Likely to decrease 3.3% to 33,945 units (from 35,085 units YoY)
The anticipated decline in wholesales reflects broader market trends and sectoral challenges faced by the company.
Summary
Tata Motors' stock has been under significant pressure due to a declining demand outlook, macroeconomic concerns, and technical selling trends. Despite the current downturn, the company's long-term stock performance has demonstrated resilience, gaining 50% over the past two years and 390% over the last five years.
Easy & quick
Leave A Comment?