Wed Sep 11 06:58:25 UTC 2024: ## Tata Motors Shares Plunge on UBS’s ‘Sell’ Call Amid JLR Discount Concerns

**MUMBAI, INDIA -** Shares of Tata Motors took a significant hit on Monday, September 11th, after UBS Securities maintained its “sell” rating on the automaker. The brokerage cited concerns over potential margin slippage at the company’s luxury arm, Jaguar Land Rover (JLR), and within the domestic passenger vehicle segment.

UBS believes that the initial strong sales of JLR’s premium models, such as the Defender, Range Rover, and Range Rover Sport, have started to moderate. The brokerage expects discounts for the Range Rover to increase as the order book returns to pre-COVID levels. This potential decline in sales and pricing pressure could impact Tata Motors’ margin performance.

The brokerage’s concerns are further amplified by Tata Motors’ recent price cuts across its electric vehicle (EV) lineup. The company launched a “Festival of Cars” campaign, offering discounts until October 31st, to make EVs more accessible in India. This move, following similar discounts on internal combustion engine (ICE) vehicles, could further pressure margins.

While the company aims to make EVs mainstream with these discounts, UBS’s concerns regarding JLR’s future performance and potential margin erosion have left investors wary, contributing to the stock’s significant drop.

**Disclaimer:** This news article is for informational purposes only and should not be considered investment advice. Consult with a certified financial advisor before making any investment decisions.

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