Why Tata Motors Share Price Is Falling?
Shares
of Tata Motors have been in a downtrend for quite some time. Tata motors hit a 52
week high of Rs. 536 a few months ago and since then the stock has been falling
continuously. Many large investors hold this stock in their portfolios. Since
it is one of the biggest automobile manufacturing companies in India, the fall
has been worrisome for many stakeholders. In this article, we list down some of
the reasons for the fall in the share price of Tata Motors;
Reasons for Fall
· The shortage of semiconductor chips is of the
biggest concerns for Tata Motors. The shortage is caused due to pandemic and
higher usage of semiconductor chips in advanced vehicles. Overcoming the
shortage of chips will take time as manufacturing them is a complex task. Till
then the price of Tata Motors may remain under pressure.
· The ongoing war between Russia-Ukraine has led
to instability in Europe where Tata Motors has a decent market share. The
demand and production are expected to be disrupted in the European market due
to rising costs and inflationary concerns.
· The demand in the Chinese market is another
cause of concern for the company. If the sales numbers fall in the Chinese
market fall in line, it would be a respite for the company.
· The ever going competition in the Indian
domestic market may also be another reason for the pressure on the stock
pressure. However, the sales of commercial vehicles by Tata Motors have been on
the rise in the domestic market but the competition is keeping the company and
stock price on their toes.
The
above mentioned are some of the reasons for the fall in the stock price of Tata
Motors. Going forward if there is a positive development on any front, the
stock price may rebound. Many brokerage houses have a positive outlook on the
future of Tata Motors. In the coming months, it would be interesting to see the
movement of Tata Motors stock price.