Tata Motors shares slump; JLR unit says to hike capex

Reuters Market Eye - Shares in Tata Motors Ltd slump as much as 5 percent after the auto maker said luxury unit Jaguar Land Rover Ltd would increase its capital spending to around 3.5 billion pounds to 3.7 billion pounds in fiscal year 2015 from an estimated 2.75 billion pounds in fiscal 2014.

However, the planned increase in JLR's capital spending could lead to negative free cash flow in fiscal 2015, Tata Motors said in the statement.

The estimate was provided in a statement on its website. A company official did not respond to Reuters queries about the timing of the statement.

 

(Reporting by Abhishek Vishnoi)