Tata Motors‘ share price continued to slump on Tuesday going down over 3% to hit an intraday low of ₹900.25.

What Happened: British automaker Jaguar Land Rover (JLR) faced supply chain disruptions in Q2, leading to a slight decline in retail sales. The company reported 1.03 lakh units sold, a 3% drop compared to the same quarter last year. Production was limited to around 86,000 units, marking a 7% decrease year-on-year, largely due to supply disruptions from a key high-grade aluminium supplier, which affected multiple original equipment manufacturers (OEMs).

Additionally, JLR’s wholesale volumes, excluding its China JV with Chery Jaguar Land Rover, fell by 10% year-on-year to 87,303 due to these aluminium supply issues.

What Are Analysts Saying: Emkay Global maintained its “buy” rating for the stock with a target price of ₹1,175. The brokerage has reaffirmed its bullish stance on the auto giant, driven by structural improvements in Jaguar Land Rover (JLR) operations.

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The brokerage highlights that JLR is on track to become net-debt-free by FY25 and views Tata Motors’ healthy India outlook, particularly in commercial vehicles, as a positive amidst a cyclical recovery and strong margin growth.

On the other hand, Motilal Oswal maintained its “neutral” rating on the stock with a price target of ₹990. The analysts expect JLR’s margins to face pressure over FY24-FY26, citing rising costs related to demand generation, normalizing product mix, and electric vehicle (EV) ramp-up, which could dilute margins.

Additionally, the brokerage firm notes that Tata Motors’ Indian business, both in commercial and passenger vehicles, is experiencing moderation in demand. It anticipates flat margins for the Indian operations during the forecast period.

UBS maintained its “sell” rating on Tata Motors with a target price of ₹825, citing concerns about the changing dynamics in key markets like China. The report highlights that China, once a fast-growing market for global carmakers, is no longer providing the same level of growth opportunities. While premium cars may show more resilience in this market, the loss of market share for global carmakers is expected to continue.

Price Action: Tata Motors’ share price was down 2.59% to trade at ₹903.80 as the markets opened on Tuesday.

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