Tata Motors rally unlikely to last, analysts sceptical on China momentum

The scaling up of operations comes as a relief given that auto sales in China had dropped 80 per cent year-on-year in February and 40 per cent in March

The Tata Motors stock gained 19 per cent in trade on Thursday, on reports that production levels in its subsidiary Jaguar Land Rover’s (JLR’s) China plant have recovered to 75 per cent-levels.

JLR operates the plant under a joint venture with Chery Automobile Co. The scaling-up of operations comes as a relief, given auto sales in China had dropped 80 per cent year-on-year in February and 40 per cent in March.

The China Passenger Cars Association indicated that car sales have been on the uptrend since April 20 and sales for the month should end at the year-ago levels.

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