Tata Motors share price extends fall for ninth consecutive session, hits 52-week low; more downside left?

Tata Motors share price declined over 2% on Friday to hit a fresh 52-week low amid persistent selling pressure. Tata Motors shares extended its fall for the ninth consecutive trading session on February 28 and touched a 52-week low of ₹630.15 apiece on the BSE.

Tata Motors stock is down more than 46% from its peak, eroding about ₹2 lakh crore in its market value.

The decline in Tata Motors’ stock price is primarily driven by a weak demand outlook for Jaguar Land Rover (JLR) in key markets such as China and the UK, along with softness in the domestic passenger vehicle segment.

Additionally, concerns over potential US import tariffs on European-made vehicles pose a further risk to JLR’s sales in the US, which accounts for 25% of its retail volumes.

Tata Motors is expected to report a drop in its total wholesales during the month of February 2025. According to brokerage firm Motilal Oswal Financial Services, Tata Motors’ auto sales in February is estimated 5.7% to 81,505 units from 86,406 units in the same period last year.

The company’s Passenger Vehicle (PV) sales this month is expected to fall 7.3% to 47,560 units from 51,321 units, year-on-year (YoY). Commercial Vehicles (CV) sales are likely to decline 3.3% to 33,945 units from 35,085 units, YoY.

What do technical charts show?

On the technical charts, Tata Motors stock price has been testing key support levels after witnessing a failed breakout.

“Tata Motors, after a failed breakout at ₹1,065, has finally hit its downside target of ₹659 but struggled to hold this support. A sharp bounce was anticipated, but selling pressure has pushed the stock lower. Now, the next major support at ₹589 — a critical weekly and monthly level — is in focus. With bearish momentum prevailing, a retest of ₹589 seems highly probable,” said Anshul Jain, Head of Research at Lakshmishree Investment and Securities.

If this level fails, Jain believes further downside may unfold, and he suggests investors to watch price action carefully.

Tata Motors share price has declined over 13% in the past month and more than 15% on a year-to-date (YTD) basis. The auto stock has fallen 41% over the past six months and 34% over the past year.

However, in the long term, Tata Motors has delivered strong returns, gaining 50% over the past two years and delivering multibagger returns of 390% over the past five years.

At 10:20 AM, Tata Motors shares were trading 2.18% lower at ₹634.10 apiece on the BSE, with a market capitalisation of over ₹2.33 lakh crore.

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