Tata Motors‘ share price was down deep in the red as the market opened on Thursday after a mid-week holiday. The stock went down close to 3% to hit an intraday low of ₹937.30.

What Happened: The slump today comes as Mahindra & Mahindra (M&M) became India’s third-largest passenger car player, surpassing Tata Motors in domestic sales for the first time in over half a decade in September.

The company clocked sales of 51,062 units, reflecting a robust 24% year-on-year growth compared with 41,267 units sold in September 2023. Additionally, M&M exported 1,528 vehicles, adding to its performance.

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In contrast, Tata Motors saw a decline in sales with 41,063 units sold, marking an 8% drop compared to the 44,809 units sold in the same month last year. This allowed M&M to emerge as the third-largest player in India’s passenger vehicle market, following Maruti Suzuki‘s 1.45 lakh units and Hyundai Motor India‘s 51,101 units.

Total sales of the Tata Group company slumped 15% to 71,345 vehicles, missing analysts' estimates. Sales of commercial vehicles stood at 30,032 units, declining 23% from last year.

Shares of the automobile giant were also under pressure as broader market indices fell in reaction to the escalation of tensions between Israel and Iran.

Price Action: Tata Motors’ share price was down 1.86% to trade at ₹947.25 as the markets opened on Thursday.

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