Tata Motors' stock has experienced a significant decline, falling 44% from its peak of ₹1,179.05 in July 2024 to a 52-week low of ₹662.10 as of February 25, 2025. This sharp downturn has resulted in a market capitalization loss of approximately ₹1.9 lakh crore. Several factors have contributed to this decline:
1. Weak Q3 Earnings: The company's consolidated net profit for the December quarter dropped by 22% YOY to ₹5,451 crore, with revenue increasing marginally by 3% to ₹1,13,575 crore. The JLR segment, a significant revenue contributor, faced margin declines and weak demand in key markets like China and Europe.
2. Rising Competition: Tata Motors is encountering intensified competition in the SUV segment, particularly from Mahindra & Mahindra (M&M). In January 2025, M&M's SUV sales rose by 18% year-on-year to 50,659 units, while Tata Motors' passenger vehicle sales decreased by 10% to 48,076 units.
3. Potential New Entrants: Speculation about Tesla entering the Indian market has added to investor concerns.
1. Weak Q3 Earnings: The company's consolidated net profit for the December quarter dropped by 22% YOY to ₹5,451 crore, with revenue increasing marginally by 3% to ₹1,13,575 crore. The JLR segment, a significant revenue contributor, faced margin declines and weak demand in key markets like China and Europe.
2. Rising Competition: Tata Motors is encountering intensified competition in the SUV segment, particularly from Mahindra & Mahindra (M&M). In January 2025, M&M's SUV sales rose by 18% year-on-year to 50,659 units, while Tata Motors' passenger vehicle sales decreased by 10% to 48,076 units.
3. Potential New Entrants: Speculation about Tesla entering the Indian market has added to investor concerns.
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