Tata Motors Ltd shares cracked as much as 7.5% in intra-day trade on Wednesday after the company’s international subsidiary Jaguar Land Rover (JLR) reported a 2.4% year-on-year drop in US sales in February. The stock was also under pressure after the company announced on Tuesday that production was down 34.4% in February 2020 due to the impact of coronavirus outbreak.
At 2:45 pm, Tata Motors shares were trading at Rs 123.75, down 5.1%, after hitting the day’s low of Rs 120.55. The benchmark Sensex, meanwhile, was down 465.62 points, or 1.2%, to 38,158.08. Notably, the Tata Motors stock has lost over 25% in the last one month itself.
Jaguar sales in the US during February 2020 declined 21% year-on-year to 2,739 units as against 3,465 units a year ago, while Land Rover sales rose 5.4% to 8,593 units versus 8,151 units.
Tata Motors had also reported a 34% year-on-year decline in domestic sales to 38,002 units in February earlier this week.
Separately, Tata Motors also announced on Tuesday that the company produced 37,826 units in February against 56,826 vehicles in the year-ago period, while admitting that the outbreak of coronavirus has hit its India production due to supply-chain challenges from China. A recent fire incident at one of vendors has also reportedly affected the vehicle production and wholesale volumes.
“The supply disruptions from the COVID-19 outbreak in China could have some impact on the BSVI transition and all efforts are underway to mitigate it,” Girish Wagh, president, commercial Vehicles Business Unit at Tata Motors, had noted in a recent statement.
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