Tata Motors cracks over 4.5%; top Nifty 50 losers
Shares of Tata Motors cracked over 4.5% in today’s trade amid weakening demand for subsidiary JLR. Media sources reported that this could put about 1,000 contract (temporary) jobs in danger. The company will, however, continue to hire engineers, graduates and apprentices for investing in new products and technologies. Also, its commitment to the UK plant will continue. JLR has invested more than £4bn since CY2010 to future proof manufacturing technologies to deliver new models from that plant.
Currently, the stock is top losers in the Nifty50 index.
The recent decision comes in the wake of factors such as slowing diesel sales (down 37% yoy in March 2018). JLR has significant exposure to diesel as 90% of its UK sales are diesel vehicles. As per industry experts, JLR has been slower than rivals to embrace hybrid and electric vehicles. Brexit also poses another threat to luxury car makers in the UK, as it is unclear how trade relations between UK and EU will pan outpost the event.
The stock is currently trading at Rs340.55 down by Rs16.1 or 4.51% from its previous closing of Rs356.65 on the BSE. The scrip opened at Rs351.50 and has touched a high and low of Rs352.50 and Rs338.85 respectively.