Shares of Tata Motors slumped as much as 5 per cent to Rs 338.85, its biggest intraday percentage loss since March 16 as JLR said it will cut jobs amid lower sales.

Britain's biggest carmaker Jaguar Land Rover will cut around 1,000 jobs and production at two of its English factories due to fall in sales caused by uncertainty around Brexit and confusion over diesel policy, a source told Reuters.

“Stock may react negatively to this announcement, we don't see it as a new negative development,” says Macquarie.

Car demand in the UK and Europe is facing multiple headwinds and these cost reduction initiatives are the company’s response, it says.

Macquarie has retained 'outperform' rating. It says the market is ascribing nearly zero value to the JLR business at the current stock price. As of Friday's close, the stock was down 21.2 per cent in the last 12 months.

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