Why tata motors share is falling today, Tata Motors, one of India’s leading automotive giants, has been facing significant challenges in 2025, leading to a persistent decline in its share price. Investors and market analysts are increasingly asking, Why Tata Motors share is falling today 2025? This question is critical as the company, known for its diverse portfolio spanning passenger vehicles, commercial vehicles, and luxury brand Jaguar Land Rover (JLR), navigates a complex global and domestic market landscape
Global Economic Headwinds Impacting Tata Motors
One of the primary reasons why Tata Motors share is falling today 2025 is the broader macroeconomic environment. Global economic uncertainties, including inflationary pressures and geopolitical tensions, have significantly impacted the automotive sector. The imposition of a 25% tariff on car imports by the United States, announced by President Donald Trump, has hit Tata Motors hard, particularly its subsidiary, Jaguar Land Rover.
The U.S. market accounts for approximately 22% of JLR’s total sales, making it a critical revenue driver. These tariffs increase the cost of JLR vehicles in the U.S., potentially reducing demand and squeezing profit margins. This development has led to a sharp sell-off in Tata Motors stock, with shares dropping nearly 6% in a single trading session in March 2025.
Why tata motors share is falling today 2025
Additionally, global supply chain disruptions continue to plague the automotive industry. Tata Motors has faced challenges with aluminum supply due to flooding at a key supplier, affecting JLR’s production capabilities. This has raised concerns about meeting delivery targets, further contributing to the perception of operational weakness and explaining why Tata Motors share is falling today 2025.
Weak Performance of Jaguar Land Rover (JLR)
Jaguar Land Rover, which contributes around 70% of Tata Motors’ consolidated revenue, has been a significant factor in the company’s stock price decline. Why Tata Motors share is falling today 2025 can be partly attributed to JLR’s revised financial outlook for FY26. The company slashed its EBIT margin guidance to 5-7% due to increased investments in electric vehicles (EVs) and product transitions. This downgrade has raised concerns among investors about JLR’s profitability, especially in key markets like China and Europe, where demand has softened.
JLR’s challenges are compounded by rising customer acquisition costs and higher warranty expenses, which have eroded margins. For instance, in Q3 FY25, Tata Motors reported a 22% year-on-year decline in net profit to ₹5,451 crore, driven by weaker JLR volumes and lower average selling prices. This disappointing performance led to a significant 8% intraday drop in share price, reinforcing investor concerns about why Tata Motors share is falling today 2025.
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Moreover, CLSA, a prominent brokerage, recently downgraded Tata Motors from its “high conviction outperform” list to a regular “outperform” rating, cutting its price target by 18% to ₹765. This downgrade reflects expectations of lower JLR sales and a potential drop in EBIT margins to 7% in FY26-27, further fueling the narrative around why Tata Motors share is falling today 2025.
Domestic Market Challenges
In India, Tata Motors has faced headwinds in both its commercial vehicle (CV) and passenger vehicle (PV) segments, contributing to the question of why Tata Motors share is falling today 2025. The commercial vehicle market has been under pressure due to slower infrastructure projects, reduced mining activity, and adverse weather conditions like heavy rains. In Q2 FY25, domestic CV wholesale volumes fell by 19.6% year-on-year, leading to a 13.9% revenue drop.
The passenger vehicle segment, including electric vehicles, has also shown signs of weakness. Tata Motors reported a 4% decline in total sales for FY24-25, with passenger vehicle sales dropping 3% to 5,56,263 units. The launch of the Curvv EV, which accounts for 20% of EV bookings, faced ramp-up issues, and aggressive discounts during the festive season further dented margins. These factors have contributed to a bearish sentiment, explaining why Tata Motors share is falling today 2025.
Additionally, high inventory levels at dealerships have been a persistent issue. As of September 2024, unsold vehicle inventory reached a record 80-85 days, valued at approximately ₹79,000 crore. This buildup, coupled with an 18.81% year-on-year decline in personal vehicle retail sales in September, has raised concerns about demand softness, further driving the narrative of why Tata Motors share is falling today 2025.
Corporate Restructuring and Market Perception
Tata Motors’ ongoing corporate restructuring has also played a role in the stock’s decline. In 2024, the company converted its Differential Voting Rights (DVR) shares into ordinary shares, leading to the sale of approximately 80 lakh shares to cover tax liabilities. This move triggered a sharp fall in share price, as automatic stop-loss orders and technical selling exacerbated the decline. The restructuring, while aimed at simplifying the company’s capital structure, has created short-term volatility, contributing to why Tata Motors share is falling today 2025.
Furthermore, the planned demerger of Tata Motors into two entities—one focusing on commercial vehicles and the other on passenger vehicles, including EVs—has raised questions about future valuation and operational efficiency. While the demerger is expected to enhance focus and agility, the uncertainty surrounding its execution and potential costs has kept investors cautious, adding to the reasons why Tata Motors share is falling today 2025.
Brokerage Downgrades and Analyst Sentiment
Brokerage downgrades have significantly impacted investor confidence, providing another answer to why Tata Motors share is falling today 2025. For instance, Jefferies downgraded Tata Motors to an “Underperform” rating with a target price of ₹600, citing a 16% year-on-year decline in Q3 EBITDA and challenges in JLR’s key markets. Similarly, UBS issued a “sell” rating with a target price of ₹825, pointing to weak growth prospects and rising discounts. These downgrades, combined with revised earnings estimates, have fueled selling pressure.
Motilal Oswal also lowered its FY26 earnings estimates by 10% and maintained a “Neutral” rating with a target price of ₹690, reflecting concerns about JLR’s margin guidance cut. The consensus among analysts, with 20 out of 34 recommending a “buy,” nine a “hold,” and five a “sell,” suggests a mixed outlook, but the negative revisions have dominated market sentiment, explaining why Tata Motors share is falling today 2025.
Technical Indicators and Market Trends
From a technical perspective, Tata Motors’ stock is showing bearish momentum, which further explains why Tata Motors share is falling today 2025. The stock is trading below its 50, 100, and 200-day moving averages, indicating a strong downtrend. The Relative Strength Index (RSI) at 28 suggests the stock is in “oversold” territory, but this has not yet translated into a rebound, as selling pressure persists.
The stock has fallen 38.75% over the past year and 33.43% in the last month, with a 52-week low of ₹606.20. This significant correction from its all-time high of ₹1,179 in July 2024 has made Tata Motors one of the worst-performing stocks on the Nifty 50 in 2024, intensifying investor concerns about why Tata Motors share is falling today 2025.
Competitive Pressures in the EV Market
Tata Motors has been a pioneer in India’s electric vehicle market, but increasing competition is another reason why Tata Motors share is falling today 2025. Rivals like Mahindra & Mahindra, Hyundai, and Maruti Suzuki are intensifying their EV offerings, challenging Tata Motors’ market share. The aggressive pricing strategy, including discounts of up to ₹3 lakh on the Nexon EV, has hurt margins without significantly boosting sales, adding to the company’s woes.
Moreover, the slower-than-expected ramp-up of new EV models like the Curvv EV has disappointed investors, who were banking on Tata Motors’ leadership in the EV space to drive growth. This competitive pressure, combined with a soft demand environment, provides a clear reason why Tata Motors share is falling today 2025.
Positive Developments and Long-Term Potential
Despite the current challenges, Tata Motors has several strengths that could support a recovery. The company’s debt-to-equity ratio has improved significantly, dropping to 0.54 in 2025 from 1.16 in 2024, reflecting better financial health. Additionally, Moody’s upgraded JLR’s rating to Ba1 with a positive outlook, signaling confidence in its long-term prospects.
Tata Motors is also investing heavily in its EV portfolio, with plans to launch models like the Punch EV, Harrier EV, and Sierra EV by 2027. These initiatives could position the company to capitalize on the growing demand for sustainable mobility, potentially reversing the trend of why Tata Motors share is falling today 2025.
Analysts like CLSA remain optimistic about Tata Motors’ long-term potential, citing attractive valuations and a potential cyclical recovery in the CV market by FY26. The brokerage’s target price of ₹765 suggests a 17% upside, indicating that the current price may reflect short-term challenges rather than long-term value.
Conclusion
The question of why Tata Motors share is falling today 2025 is complex, driven by a combination of global economic challenges, JLR’s weakened performance, domestic market softness, corporate restructuring, and competitive pressures in the EV space. The imposition of U.S. tariffs, supply chain disruptions, and brokerage downgrades have further exacerbated the decline, leading to a 38.75% drop in share price over the past year.
However, Tata Motors’ strong fundamentals, including a robust product portfolio, improving financial metrics, and a strategic focus on EVs, suggest that the current downturn may be temporary. Investors with a long-term horizon may find value at current levels, especially as the company navigates these challenges and positions itself for future growth. For now, the reasons behind why Tata Motors share is falling today 2025 highlight the need for cautious optimism and thorough research before making investment decisions.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Always consult a qualified financial advisor before making investment decisions.