Shares of Tata Motors slumped 5 per cent to Rs 129.85 on the BSE on Tuesday as Brexit divorce deal faced fresh blockade from the United Kingdom Parliament.
At 10:40 am, stock of the Indian automobile manufacturer was trading nearly 4 per cent lower at Rs 131.45. In comparison, the S&P BSE Sensex as trading 0.25 per cent lower at 39,202 level. A total of 3.5 million shares have changed hands so far on the NSE and BSE. So far in 2019, the stock has slipped 21 per cent.
Jaguar Land Rover Automotive Plc (JLR) is Britain's largest automobile manufacturer, housing two iconic British brands under the Tata group. As per the company's 74th Annual Report 2018-19, JLR contributes 74 per cent to the Tata Motors Group revenue. Since March 29, 2017, Tata Motors investors have lost Rs 1 trillion since Brexit was announced.
On Friday, the stock had rallied 12 per cent on hopes of a soft-EU exit by UK on October 31 after Johnson said he had reached a "great deal" with EU.
On Monday, House of Commons speaker John Bercow said UK PM Boris Johnson was not allowed to push for the same vote twice in the same parliamentary sitting. Earlier on Saturday, British lawmakers decided to force the Conservative leader to ask Brussels to postpone the October 31 divorce by three months (till January 31). READ REPORT HERE
JLR is a net exporter of finished vehicles and a net importer of auto component parts from the EU. A no-deal Brexit or a hard Brexit would mean its models and parts would have faced tariff barriers, making them uncompetitive.
On a consolidated basis, the auto maker had reported a net loss of Rs 3,604.30 crore in Q1 June 2019 over a net loss of Rs 1,902.37 crore in Q1 June 2018. Net sales fell 7.8 per cent to Rs 60,830.16 crore in Q1 June 2019 over Q1 June 2018.