Tata Motors’ share price was slumping on Monday morning as Mahindra and Mahindra continued to outsell the Tata Group auto manufacturer for the second straight month, maintaining its position as the third-largest passenger car player in the country.

What Happened: However, analysts at Morgan Stanley remain upbeat about the stock’s performance. Morgan Stanley maintained its “equal weight” rating on the auto giant with a target price of ₹1178. The target indicates an around 40% upside from the stock’s last closing price of around ₹843.

The brokerage highlighted Tata Motors’ reported 25% year-on-year (YoY) increase in Land Rover US retail sales, reaching 6,900 units. Jaguar US retail sales also saw a 4% uptick to 715 units.

The mix of Range Rover, Range Rover Sport, and Defender models stood at 71%, a slight increase from 70% in the second quarter of 2025. However, Jaguar Land Rover (JLR) incentives per unit grew substantially, increasing 127%.

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The jump in US retail sales is seen as a positive development for Tata Motors, especially considering the automaker’s recent challenges. Earlier in October, JLR reported a 3% dip in Q2 retail sales due to supply chain disruptions.

JLR’s retail sales for the first half of the fiscal year saw a 3% increase year-on-year, amounting to 2.14 lakh units. The company also reported a 29% surge in the global retail sales of its hybrid vehicles during the first half of the financial year 2025, indicating a growing demand for plug-in hybrid models.

Domestically, Tata Motors’ total sales for October 2024 stood at 82,682 vehicles, slightly ahead of analyst estimates but flat when compared to the previous year’s figures.

Price Action: Tata Motors’ share price was down 1.20% to trade at ₹833.25 as the markets opened on Monday.

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