INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Share price of Tata Motors fell below Rs 100 on Wednesday for the first time in the last 11 years amid slowing demand for
personal and commercial vehicles and likely disruption in production due to coronavirus.
The scrip fell 6.43 per cent to close at Rs 99 on
It hit 52-week low intra-day and closed on a weak note for the fifth consecutive session
The stock has been ending in the red since March 4
It has lost more than 24 per cent since then on the BSE.
More than 11 crore shares of Tata Motors were traded on the NSE and 57.43 lakh on
the BSE.
On Friday, Tata Motors said it expects limited volume loss in its domestic business during the January-March 2020 period due to
disruption of supply chain from China, owing to the coronavirus outbreak.
The auto major said JLR sales in China have dropped 85 per cent in
The joint venture plant in China reopened in the last week of the month and the production will be ramped up as the number of employees
returning to work and demand increase, the company said.
"For Tata Motors' domestic business, fourth quarter performance was already planned
to be significantly impacted due to the switchover from BS-IV to BS-VI and the shortage of parts is likely to have some additional impact on
specific BS-VI models which is expected to be secured in the coming months," the company said in a statement.
While sharing an update on the
impact of coronavirus, the company, however, remained optimistic to end the fourth quarter with positive free cash flow.
"Coronavirus
worries are now spreading to Europe, the US and the UK
All of the operating geographies are getting hit
Production in China along with demand is getting impacted
This will keep on halt all the upcoming launches and capex programmes
In the domestic market, Tata Motors fears further demand slump," said Ashwin Patil, Senior Research Analyst - Auto, LKP Securities.