Tata Motors Shares Tank Over 4% To Sink Below ₹1,000 Levels As UBS Maintains 'Sell' Rating

Tata Motors‘ share price extended losses for the ninth straight session on Wednesday slumping over 4% to hit an intraday low of ₹989.55.

What Happened: UBS has maintained a “sell” rating on Tata Motors, setting a target price of ₹825, citing concerns around Jaguar Land Rover (JLR). A key issue is the sharp increase in discounts for the Range Rover Sport.

While JLR has experienced strong growth in average selling prices (ASPs) and margins in recent years, driven by high demand for its latest models, this momentum is now starting to slow, with the order book falling below pre-COVID levels.

UBS expects discounts to continue rising, compounded by disruptions in aluminium supply due to flooding, which could affect near-term deliveries. The brokerage also predicts that incentives for JLR's flagship Range Rover, which had been minimal, will start increasing.

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Another concern is the lack of upcoming new internal combustion engine (ICE) or hybrid vehicle launches, which UBS believes could lead to significantly weaker financials for JLR by FY26.

Separately, on Tuesday evening, the Competition Commission of India (CCI) gave the green light for the proposed merger of Tata Motors Finance into Tata Capital.

Price Action: Tata Motors’ share price was as the markets opened on Wednesday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.