Tata Motors under pressure in China due to slowdown

Tata Motors sales in China might be hit as it is reeling under the pressure of the slowdown in the Chinese market. The manufacturer has taken measures like a price-cut on some of its models to combat the situation.

The company's stock has declined by 27 per cent in the last quarter and by 8 per cent in June. According to analysts, the pressure has increased on Tata Motors as institutional investors have been selling Tata Motors shares at every rise.

Ashwin Patil, equity analyst, LKP Securities, said, "We think that there is some pressure definitely in the mid-term because first of all the growth in Chinese market is slowing down and on the back of that definitely the luxury carmakers are going to get hit."

Tata Motors-owned Jaguar Land Rover has a good presence in China; in fact, the country is one of the biggest markets for the carmaker. The overall sales of the company fell by one per cent and the sales numbers went down by 33 per cent in the first quarter. The June sales also descended to 6,242 units showing a drop of 46 per cent. This month, the company slashed the prices of the Range Rover Evoque by 5-11 per cent to encounter the slump in sales and help the company's performance.

Source: NDTVProfit