Tata Motors‘ share price was crashing on Tuesday morning going down over 4% to hit an intraday low of ₹840.80.

What Happened: The crash today comes amid a broader sell-off in auto stocks, with several of its peers, including Maruti Suzuki, Hyundai and Mahindra, feeling the pressure. The Nifty Auto Index was down 2% in morning trade. The auto industry has been dealing with a soft-demand environment for the past few months.

Media reports suggest that dealers are carrying a high inventory of 7.9 lakh vehicles valued at ₹79,000 crore. According to the Federation of Automobile Dealers Associations (FADA), personal vehicle retail sales in September saw an 18.81% year-on-year decline, despite festivals like Ganesh Chaturthi and Onam.

FADA noted that factors such as shraddh, pitrapaksha, heavy rainfall and a sluggish economy have worsened market sentiment, pushing inventory levels to a historic high of 80-85 days as of September 30.

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Tata Motors, specifically, has also been dealing with declining sales. The Tata Group firm's total sales in the domestic and international market stood at 2.15 lakh vehicles in Q2 of FY25 compared to 2.43 lakh units during the same period last year, representing a decline of nearly 12%

The company’s shares have also taken a major hit in the quarter. In just the last 30 days, the stock has sunk around 13% and technical analysts see further pain ahead for the automobile company. The company is scheduled to report earnings on November 8.

Price Action: Tata Motors’ share price was down 3.77% to trade at ₹845.35 in the early hours of trading on Tuesday.

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