Tata Motors shares slumped as much as 11.51 per cent on Wednesday, marking their lowest level recorded since 2002. On the Bombay Stock Exchange (BSE), Tata Motors shares slumped to as low as Rs 109.55 apiece, as against their previous close of Rs 123.80. The sharp selloff in the Tata Motors stock came after China's Geely Automobile Holdings said that its profit fell 40 per cent amid a sustained downturn in the world's biggest auto market leading to analysts and traders worrying about Tata Motors China sales going ahead.
The sales slowdown report from China comes at a time when India's auto sector is going through its worst time in nearly two decades. Domestic passenger vehicles sales in India plunged 30.98 per cent to 2,00,790 units last month, data from industry body SIAM or Society of Indian Automobile Manufacturers revealed last week.
On the National Stock Exchange, the Tata Motors share price fell as much as 11.59 per cent to hit an intraday low of Rs 109.50.
"In China, electric vehicle concentration is happening and China's Geely Automobile Holdings profit falling 40 per cent amid auto slowdown in China is leading to today's selloff in Tata Motors. China is a big market for Tata Motors," AK Prabhakar, head of research at IDBI Capital, told NDTV.
"Tata Motors anyway had not been performing well and bad time for the company started few years ago and worst is continuing for them due to global auto slowdown. On top they have huge debt and leverage is also hurting the company," Mr Prabhakar added.
At 2:14 pm, Tata Motors share traded 10.38 per cent lower at Rs 110.95 on the BSE, underperforming the benchmark Sensex index which was down 0.6 per cent.
Trading volume in Tata Motors shares saw a huge spike as over 36 lakh shares changed hands on the BSE compared with an average of 24.74 lakh shares in the past two weeks, data from the BSE showed.
Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.