The automobile industry, which saw the steepest volume plunge in August in nearly two decades, has long been demanding lowering of GST on automobiles to 18 percent from the present 28 percent to boost demand.
At 2.51 p.m., Tata Motors was trading 9.25 per cent lower at Rs 112 a share on the NSE before hitting its 52-week low of Rs 109.50 apiece. The Nifty Auto index was down 0.75 per cent. Other constituent stocks like Ashok Leyland, Apollo Tyres, Mahindra and Mahindra and TVS Motors were also trading in the red.
TVS joins a long list of companies that shut motor parts production in its unit. It joins Maruti Suzuki India, Hero MotoCorp, Royal Enfield, Mahindra & Mahindra, Tata Motors, Bajaj Motors among others who have shut production temporarily or gone for block closures.
Tata Motors went for a day closure on August 1. It went for three block closure from August 8-10 and third block will be from August 16. Sources in Tata Motors say there has been a sharp decline in the purchase order of the vehicles from the Jamshedpur unit.
Ratings agency S&P has reaffirmed Tata Motors' long-term issuer and issue credit ratings to be 'vulnerable to nonpayment' while keeping the outlook negative.
Addressing the shareholders at the AGM, Chandrasekaran pointed out that the automobile sector is such that a company cannot shut the cash tap as the very nature of this business demands continuous investment in product and technology development.
Tata Motors Managing Director and CEO Guenter Butschek's total remuneration was at Rs 26.29 crore, an increase of 1.57 per cent from the previous year, according to the company's annual report for 2018-19. On the other hand, Mahindra & Mahindra (M&M) Managing Director Pawan Goenka's total remuneration for FY2018-19 was at Rs 12.19 crore, which was at a marginal decline of 0.16 per cent from the previous fiscal, its annual report for 2018-19 showed.
Global wholesale units of all Tata Motors' commercial vehicles and Tata Daewoo range last month stood at 38,846 units, down 12 per cent from 44,229 units a year ago, the company said in a statement.
Tata Motors on Monday said it has received an order for over 200 units of its sports utility vehicle Hexa from Bangladesh Army. The company said it has won the contract for the four-wheel drive version of the model.
Sources in the state-owned Road Transport Corporation said these electric buses were received from Tata Motors two months back, but are yet to start operation for want of charging points.
The company's other products like compact SUV Nexon and recently launched SUV Harrier come with bigger 1.5-litre and 2-litre powertrains respectively and are expected to be upgraded to the next level going ahead.
There was zero production and sales of Nano in March. In the same month last year the company had produced 31 units of Nano and sold 29 units, Tata Motors said in a BSE filing.
The company had reported a net profit of Rs 1,214.6 crore in the October-December quarter of 2017-18.
The new vehicle from the Tatas will compete with the likes of Jeep Compass, Hyundai Creta, Hyundai Tucson and the Mahindra XUV500.
Nexon is the first and only car in India to receive 5-star adult safety rating in Global NCAP test.
Total revenue from operations grew to Rs 17,758.69 crore during the quarter from Rs 13,310.37 crore in the same period of 2017-18.
The petrol variants of new Tigor are priced between Rs 5.20 lakh and Rs 6.65 lakh, while the diesel trims are tagged between Rs 6.09 lakh and Rs 7.38 lakh.
The stock cracked 13.40 per cent to end at Rs 184.25 on the BSE. During the day, it slumped 19.78 per cent to Rs 170.65, its multi-year low level. On NSE, the scrip dropped 13 per cent to close at Rs 184.55.
"The growth in the last two quarters has seen an upturn and this momentum is expected to continue," Tata Motors Manufacturing Head (CVBU), A B Lall told PTI.
Suzuki said the company has decided to launch EV in India around 2020 in cooperation with Toyota Motor Corporation
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