Tata Motors Ltd share price has dropped 30 per cent and it was the biggest drop in the last 26 years. But later on the share gained some lost ground and ended in a loss of 17.88 per cent to Rs. 150.15.
The drop in price happened as an impact of company’s third quarters result which marked a record loss. The major reason behind the loss is said to be the write-down in its luxury Jaguar Land Rover Automotive Plc unit. Plummeting sales in China are compounding Jaguar Land Rovers challenges. Its heavy production presence in the UK exposes it to a disorderly Brexit too. The net loss was ₹26,960 crore in the three months through December, exceeding the deficit reported by Indian Oil Corp. in 2012.
The rating company has placed Tata Motors on negative credit watch. The overall performance continued to be impacted by challenging market conditions in China, Ralf Speth, head of Jaguar Land Rover, said in a statement on Thursday.