Tata Motors drops on worries over wider probe in car industry after VW woes

It dropped 3.65% to Rs 319.50 at 15:00 IST

Tata Motors dropped 3.65% to Rs 319.50 at 15:00 IST on BSE after reports of calls for a wider probe of the industry in the wake of Volkswagen AG admitting to rig emission tests in the US.

Meanwhile, the BSE Sensex was down 532.47 points, or 2.03%, to 25,660.51.

On BSE, so far 6.42 lakh shares were traded in the counter, compared with an average volume of 10.6 lakh shares in the past one quarter.

The stock hit a high of Rs 333.70 and a low of Rs 318 so far during the day. The stock hit a 52-week low of Rs 304.10 on 24 August 2015. The stock hit a record high of Rs 605.57 on 3 February 2015.

The large-cap company has an equity capital of Rs 577.44 crore. Face value per share is Rs 2.

Shares of car makers posted some of the biggest losses during trade in European markets today after calls for a wider probe of the car industry in the wake of Volkswagen AG admitting to rig emission tests in the US. The auto industry was among the hardest-hit sectors after French Finance Minister Michel Sapin reportedly called for a probe of the sector in Europe. Additionally, South Korea has reportedly said it will launch a probe into Volkswagen's diesel cars, while the US government said it will expand its pollution-skirting investigation to other car makers.

The US Environmental Protection Agency (EPA) said on Friday, 18 September 2015, that the Volkswagen AG used software that deceived regulators measuring toxic emissions and could face penalties of up to $18 billion.

Tata Motors owns British luxury car unit, Jaguar Land Rover.

Tata Motors' consolidated net profit fell 48.7% to Rs 2768.91 crore on 6.2% fall in net sales to Rs 60180.57 crore in Q1 June 2015 over Q1 June 2014.

Tata Motors is a market leader in commercial vehicles in India. The company's British unit Jaguar Land Rover sells premium luxury cars.