Tata Motors' stock crashed due to this one news

Tata Motors stock is witnessing a strong sell-off today. The company's stock has come down by 5 per cent due to a news. This is the first major fall in the company's stock after making a high of Rs 1,179. Now investors are worried about why this fall happened? And will it continue further. So let's know. Tata Motors recently announced huge discounts on its electric vehicles and passenger cars. After that, its stock has fallen by more than 6% on 11 September 2024.

With this decline, the stock has come down to Rs 977 (by 2:45 pm). At the same time, foreign brokerage house UBS has advised to sell Tata Motors stock, which increased the pressure further. UBS estimates that the stock could fall to Rs 825, which is about 16% below the current level. The UBS report said that the order book of Tata Motors' subsidiary, JLR (Jaguar Land Rover), has declined, which is even below the pre-Covid-19 level.

Apart from this, the demand for JLR is likely to decrease due to economic slowdown in major markets like China. JLR has also indicated to increase discounts on its Range Rover Sport model. Although JLR has seen its average selling price and margins improve in recent years, the lack of demand in the current circumstances is becoming a cause of concern for the company. Keeping in mind the festive season, Tata Motors has announced discounts of up to Rs 2.05 lakh on its various models, especially electric vehicles, hatchbacks and SUVs. The main reason behind this is the lack of demand for passenger vehicles and the accumulation of large amounts of inventory with dealers. Dealers' sales declined by 4.5% in August 2024, which has put additional pressure on the company.