With a 44% decline in share price from a peak of Rs 1,179 in July 2024 to the present price of Rs 661.75, the company has become the worst-performing stock in the Nifty 50, wiping out Rs 1.9 lakh crore in market value.
Slow demand for Jaguar Land Rover (JLR) in important markets like China and the UK, together with worries about possible US import taxes on automobiles built in Europe, are the main causes of this steep drop.
Investor mood has been further dampened domestically by poor sales in the medium and heavy commercial vehicle (M&HCV) segment as well as increased competition in the passenger and electric vehicle (EV) segments.
The key question still stands as the market continues its downward trajectory: Is the worst over, or is there still more loss ahead?
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The poor demand outlook for JLR in key countries and the reduced projections for Tata Motors’ heavy commercial and passenger vehicle sales for FY 2025–2026 have put pressure on the stock.
Pressure is increased by the possibility that US import taxes on cars built in Europe could hurt JLR’s sales in the US, which makes up 25% of its retail sales.
Tesla’s impending arrival in India and its possible effects on regional automakers like Tata Motors are causing anxiety.
Leading brokerages, however, don’t think Tesla’s arrival will be a big threat. Nomura analysts predict that Tesla’s anticipated price of more than Rs 4 lakh will restrict direct rivalry with Tata Motors and other Indian EV makers.
Analysts are nonetheless certain that local manufacturers will continue to dominate the mass-market EV industry, despite the fact that Tesla’s technology and well-known brand may draw in some customers.
