Tata Motors plummets over 4% on lackluster wholesale volumes of Jaguar Land Rover

10 Oct 2022 , 02:03 PM

Tata Motors’ shares tanked as much as 4.6% on Monday after the manufacturer revealed lower-than-expected wholesale volumes for its Jaguar Land Rover division. Consequently, J.P. Morgan downgraded Tata Motors’ stock over the weekend.

Jaguar Land Rover’s wholesale volumes for the second quarter, excluding its joint venture in China, were 75,307, compared to its forecast of roughly 90,000.

The carmaker, one of the largest in the country, blamed the muted numbers on a lower-than-expected supply of specialised semiconductors from one supplier. However, it stated that new agreements with semiconductor suppliers will result in increased revenues in the second half of the fiscal year.

J.P. Morgan lowered its price target to Rs455 ($5.52) against previous target of Rs525.

At around 2.00 PM, Tata Motors was trading 4.28% lower at Rs394.50, against the previous close of Rs412.15 on NSE. The counter slipped to an intraday low of Rs393.40 so far.

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