There could be some downside pressure on Tata Motors: IIFL Wealth

In a chat with ET Now, Prashastha Seth, Senior Fund Manager, IIFL Wealth, shares his views on Tata Motors.

ET Now: What did you make of Tata Motors’s global sales numbers yesterday and does it seem like a slowdown is going to continue to haunt Tata Motors for a while to come, in particular for JLR?

Prashastha Seth: There are two issues with Tata Motors, one obviously is the local CV sales as well as the local car sales have been fairly down and they have been down for quite sometime. So, people have discounted that. What essentially worrying is the slowdown in the JLR sales. There are signs that China is is facing a slowdown and that is reflected on the Tata Motors numbers. The initial bookings that were getting on Evoque essentially helped them to withstand some of the slowdown in the earlier months but now Evoque has also been in the market for quite sometime and there is some slowdown as well. Given the continued slowdown in China, there could some pressures coming in Tata Motors. So, there could be some downside to the street numbers that the market is building right now.