Tata Motors fell 4.02% to Rs 119.5 after Jaguar Land Rover's CEO Ralf Speth told the media that JLR plans to close its U.K. factories for a week in November to guard against disruption to supply chains from a possible no-deal Brexit.
Britain is scheduled to exit the European Union (EU) on 31 October. However, the British Parliament has passed a law that forces Boris Johnson, UK prime minister, to ask for another delay from the EU should he fail to pass a deal.
Anticipation of Brexit has compounded the problems facing UK carmakers. Sudden delays at the border would damage the vital supply chains across the English Channel.
Tata Motors's foreign unit, Jaguar Land Rover (JLR)'s retail sales in China continued to recover (up 17.4% year-on-year) as the company's local turnaround plan gathered momentum.
JLR's retail sales in August 2019 were 34,176 vehicles, down 6.7% compared to August 2018. UK sales were solid but down 21.6% compared to August 2018, which was boosted by WLTP certification timing factors. Other markets were also down including Europe (1.4%) and North America (9.0%, impacted by new engine introduction timing issues th is month), and Overseas (24.7%, primarily softer sales in Korea and MENA).
Meanwhile, the S&P BSE Sensex was down 63.67 points or 0.16% to 38,926.07.
On the BSE, 11.78 lakh shares were traded in the counter so far compared with average daily volumes of 40.73 lakh shares in the past two weeks . The stock hit a high of Rs 122.5 and a low of Rs 118.9 so far during the day.
The stock hit a 52-week high of Rs 244 on 26 Sep 2018. The stock hit a 52-week low of Rs 106 on 04 Sep 2019.
The stock had outperformed the market over the past one month, gaining 12.67% compared with 3.99% rise in the Sensex. The scrip has underperformed the market in past one year, sliding 46.64% as against Sensex's 6.70% fall.
On a consolidated basis, the auto maker had reported a net loss of Rs 3604.30 crore in Q1 June 2019 over a net loss of Rs 1902.37 crore in Q1 June 2018. Net sales fell 7.8% to Rs 60830.16 crore in Q1 June 2019 over Q1 June 2018.
Tata Motors is a leading global automobile manufacturer of cars, utility vehicles, buses, trucks and defense vehicles.
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