Tata Motors share price fell to 11-year low today in a weak market on concerns over sluggish Jaguar Land Rover sales in China and lower volumes at home. Growing fears of coronavirus across the globe have also dampened sentiment around the stock.
Share price of Tata Motors closed 6.43% lower at Rs 99 compared to the previous close of Rs 105.80 on BSE.
The stock had hit double digits on August 31, 2009 when it closed at Rs 96.90. The large cap stock hit an intra day low of Rs 97.75 on BSE today. Market cap of the firm fell to Rs 35,615 crore today. 57.43 lakh shares changed hands amounting to turnover of Rs 58.58 crore on BSE.
The stock has lost 45% during the last one year and fallen 46% since the beginning of this year.
In last one month, the stock has seen 41% slide amid Sensex and Nifty witnessing huge correction arising out of rising number of coronavirus cases across the globe. Sensex which stood at 41,565 on February 12 has lost 5,868 points since then. The index closed at 35,697 today.
Nifty has also declined 1,743 points from its February 12 level of 12,201. It closed at 10,458 today.
Tata Motors reported a huge 85% fall in February sales in China, the world's largest car market.
Possible supply chain disruptions due to coronavirus and resultant shutdown of various parts of China led to the slump in sales.
Before that, Jaguar Land Rover sales in China grew on an average about 25% year on year for the 6 months from July through December 2019. The firm saw strong growth for the first 3 weeks of January. China accounts for almost a quarter of JLR's global sales, which in turn accounts for almost 73 per cent of Tata Motor's annual turnover of around $41 billion.
The global outbreak of virus will also affect JLR sales in the near future, said analysts. At home too, performance of Tata Motors in February was weak. The auto arm of Tata Group reported a 31 per cent fall in sales to 12,430 units last month compared to 18,110 units in February 2019.
The weakness in sales came even as the firm launched BS 6 versions of Nexon, Tiago, and Tigor in January this year.
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