Tata Motors’ share price witnessed another sharp decline on Friday, dropping over 2% to touch a fresh 52-week low. The stock extended its losing streak for the ninth consecutive trading session on February 28, hitting an intraday low of ₹630.15 per share on the Bombay Stock Exchange (BSE). This prolonged downturn has led to a significant erosion in the company’s market capitalization, wiping out approximately ₹2 lakh crore in value.
The stock is now trading more than 46% below its peak levels, reflecting the ongoing bearish sentiment surrounding the company. The primary factors weighing on Tata Motors’ stock include concerns over weakening demand for its luxury vehicle brand, Jaguar Land Rover (JLR), in key international markets such as China and the United Kingdom. Additionally, softness in the domestic passenger vehicle segment has further dampened investor confidence, contributing to the stock’s persistent decline.
The broader market conditions and sector-specific challenges continue to put pressure on Tata Motors’ stock performance, with investors closely monitoring developments in both its domestic and international operations.
Adding to the challenges faced by Jaguar Land Rover (JLR), concerns have emerged over the potential imposition of import tariffs by the United States on vehicles manufactured in Europe. Since JLR produces a significant portion of its luxury vehicles in Europe, any new tariffs could lead to higher costs for the company and its customers in the U.S. market. This poses a considerable risk to JLR’s sales, as the U.S. is a crucial market, accounting for approximately 25% of its total retail volumes. If such tariffs are introduced, they could make JLR’s vehicles less competitive compared to domestically manufactured or tariff-exempt alternatives, potentially impacting demand and sales performance in the region.
Tata Motors’ February Wholesales Expected to Decline, Stock Tests Key Support Levels on Technical Charts
Tata Motors is anticipated to report a decline in its total wholesales for February 2025, reflecting challenges across both its passenger and commercial vehicle segments. According to estimates by brokerage firm Motilal Oswal Financial Services, the company’s total auto sales for the month are expected to fall by approximately 5.7% year-on-year (YoY), decreasing to 81,505 units from 86,406 units sold in February 2024.
The decline is primarily attributed to weaker demand in the Passenger Vehicle (PV) segment, where sales are projected to drop by 7.3% YoY, from 51,321 units in February 2024 to 47,560 units this year. Meanwhile, the Commercial Vehicle (CV) segment is also expected to witness a downturn, with sales likely to decline by 3.3% YoY, falling from 35,085 units to 33,945 units.
From a technical analysis perspective, Tata Motors’ stock has been testing crucial support levels following a failed breakout attempt. This indicates that the stock has struggled to sustain upward momentum, facing resistance at higher levels. The recent downtrend has put pressure on these support zones, and market participants are closely watching whether the stock will stabilize or continue its downward movement.
Tata Motors Struggles to Hold Support at ₹659, Eyes Next Key Level at ₹589 Amid Continued Selling Pressure
Tata Motors’ stock, after failing to sustain a breakout at ₹1,065, has now reached its downside target of ₹659. However, the stock has struggled to hold this support level, as persistent selling pressure has prevented any significant rebound. Analysts had anticipated a sharp bounce from this level, but continued bearish momentum has instead driven the stock further downward.
According to Anshul Jain, Head of Research at Lakshmishree Investment and Securities, the next critical support level to watch is ₹589. This level holds significance on both weekly and monthly charts, making it a key point of interest for market participants. Given the prevailing bearish sentiment, Jain suggests that a retest of ₹589 appears increasingly likely.
If the stock fails to hold this support level, further downside could potentially unfold. Jain advises investors to closely monitor price action at this juncture, as movements around this level could provide further insights into the stock’s near-term trajectory.
Tata Motors Stock Sees Steep Decline, Sheds Over 40% in Six Months
Tata Motors’ share price has experienced a significant downturn in recent months, reflecting sustained selling pressure and broader market challenges. Over the past month alone, the stock has declined by more than 13%, continuing its downward trajectory. On a year-to-date (YTD) basis, the auto stock has registered a drop of over 15%, indicating a weak start to the year for the company’s share performance.
Looking at a broader timeframe, the decline has been even more pronounced. Over the past six months, Tata Motors’ stock has plunged by approximately 41%, erasing a substantial portion of its market value. On a year-over-year (YoY) basis, the stock is down nearly 34%, underscoring the prolonged bearish trend.
The persistent decline highlights ongoing concerns among investors, with market participants closely watching key technical levels and fundamental developments to gauge the stock’s future direction.
Tata Motors’ Long-Term Performance Remains Strong Despite Recent Decline; Stock Up 390% in Five Years
While Tata Motors’ stock has faced significant selling pressure in recent months, its long-term performance remains robust. Over the past two years, the stock has delivered a strong return of 50%, reflecting steady growth despite short-term volatility. Even more impressively, over the last five years, Tata Motors has generated multibagger returns of approximately 390%, highlighting its long-term wealth creation potential for investors who held the stock over an extended period.
Despite this strong historical performance, the stock has been under pressure in recent weeks. As of 10:20 AM, Tata Motors’ shares were trading 2.18% lower at ₹634.10 per share on the Bombay Stock Exchange (BSE). At this price level, the company’s market capitalization stood at over ₹2.33 lakh crore. Investors continue to monitor the stock closely, assessing both technical indicators and fundamental factors that may influence its future trajectory.