Tata Motors shares plunge on bleak outlook

11 Sep 2024 , 12:33 PM

Tata Motors’ shares slumped 5.6% to a day low of Rs 977.80 on the BSE, making it the biggest laggard in both the Nifty 50 and the auto index. The drop came after the business announced price cuts of up to Rs 2.05 lakh on its EVs and popular automobiles, raising fears about weak growth prospects.

As part of the ‘Festival of Cars’ campaign, the carmaker has slashed the pricing of its most popular cars and SUVs by up to Rs 2.05 lakh.

The price decrease coincides with a considerable inventory buildup at dealerships. Car sales by dealers declined 4.5% in August, marking the third decline in the current fiscal year, which began in April.

Prices for the Nexon EV have been slashed by up to Rs 3 lakh, while the Punch EV is now available with reductions of up to Rs 1.20 lakh. The Tiago’s pricing has dropped by Rs 40,000. Furthermore, Tata EV is providing six months of free charging at more than 5,500 Tata Power charge stations across India.

Meanwhile, the Competition Commission of India (CCI) stated on Tuesday that it has authorised Tata Motor Finance’s merger with Tata Capital.

Tata Capital would issue equity shares to Tata Motor Finance stockholders as part of the transaction, giving Tata Motors an effective 4.7% ownership in the amalgamated firm.

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