Tata Motors, a key player in India's automotive industry and part of Nify50  has witnessed major stock fluctuations over the years. As of March 17, 2025, Tata Motors’ stock is trading at ₹661.05, reflecting a significant 44% decline from its all-time high of ₹1,179 in July 2024.

This article explores Tata Motors’ historical stock declines, the challenges it faces—particularly in its Jaguar Land Rover (JLR) division—and the strategic steps it must take to reach a new all-time high.

Historical Stock Declines of Tata Motors

Tata Motors has seen severe downturns in its stock price multiple times:

2008 Global Financial Crisis: The stock plummeted by 77.9%, dropping from ₹142.21 in 2007 to ₹31.47 in 2008.

2015-2020 Crash: Tata Motors suffered a staggering 90% decline, falling from ₹612 in 2015 to ₹59 in March 2020. This was one of the worst phases in the company’s history, caused by falling demand, losses in the JLR business, and global economic uncertainty due Lockdown 

These historical crashes highlight the volatility in Tata Motors' stock and the importance of strategic decisions to drive long-term growth.

Challenges Of Jaguar Land Rover (JLR)

JLR, the luxury vehicle division of Tata Motors, Which Contrbutes 70% on Total Tata motors Revenue  and it has played a crucial role in its global expansion. However, it faces major challenges in Europe and China, primarily due to:

1. Tough Competition from BYD and Tesla: Chinese EV maker BYD has emerged as a serious threat to JLR in China, offering affordable and high-tech EVs. Similarly, Tesla’s presence in Europe is making it difficult for JLR to gain traction in the luxury EV space.

2.New Jaguar Branding Strategy – Risk & Reputation Impact,Jaguar is undergoing a complete transformation to position itself as an all-electric luxury brand by 2025.The new logo and brand identity have received mixed reactions—while some appreciate the modern look, others feel it has lost the classic Jaguar appeal.The transition to an all-electric lineup means phasing out older models, which could alienate long-time Jaguar customers.

3. China’s Economic Slowdown: JLR has historically depended on China for strong sales, but a slowing economy and rising local competition have negatively impacted its growth.

Challenges of India's Domestic Business (CV+PV)

1.. Decline in the Commercial Vehicles Market

Tata Motors has traditionally dominated the commercial vehicle (CV) segment in India, including trucks and buses Which Contributes 18% of Tata motor's Revenue 

However, CV sales have slowed down in Recent Quaters, impacted by:

Lower infrastructure spending from the government.

Reduced fleet expansions by logistics companies due to high interest rates.

Slower economic growth, affecting demand for heavy commercial vehicles (HCVs).

The slowdown in this segment has directly impacted Tata Motors’ revenues, as CVs contribute a major portion of its profits.

2. Increasing Competition in India's EV Market

JSW Group & MG Motors have entered the EV space aggressively, challenging Tata’s dominance in passenger EVs.Hyundai & Maruti Suzuki are preparing to launch multiple EVs in 2025-26, increasing competitive pressure.

Tata’s market share is under threat, Tata's Market Shares in EV sector was 84% now it falls below 50%

3. Heavy Discounting to Boost Sales

In September-October 2024, Tata Motors announced massive discounts across its car models, including EVs, to counter falling demand and High Inventories While the discounts boosted short-term sales, they also reduced profit margins, raising concerns about long-term sustainability.

Strategies to Help Tata Motors Achieve a New All-Time High

1. Strengthening the Commercial Vehicle Business:Focus on fuel-efficient and electric commercial vehicles to attract buyers in a sluggish market.Offer better financing options for truck operators to stimulate demand.Expand exports of commercial vehicles to markets like Africa and the Middle East, where demand remains strong.

2. Expanding EV Leadership in India:Launch more affordable EVs to counter competition from MG, JSW, and Hyundai.Tata Motors Should Launch Tata harrier EV ,Tata Safari EV and much awaited Tata Motors Avinya to Boost demand and sales, Company should Invest in battery technology to improve range and reduce production costs Company Expand charging infrastructure partnerships to encourage EV adoption.

3. Strengthening Financial Position:Reduce debt and increase cash reserves to fund future expansions.CompanyMaintain a sustainable pricing strategy instead of relying on discounts.Improve investor confidence by demonstrating long-term profitability in the EV and CV segments; Management Should Give Comment on Future Plans of Company,Next Launches 

4. Reviving JLR’s Growth:Ensure smooth execution of Jaguar’s brand transformation to an all-electric luxury brand.Improve cost efficiency in production to maintain profitability.Enhance JLR’s market presence in China & Europe through better pricing and innovative features;India is Also Big Market For JLR So company Should open more Showrooms in India to Meet the demand 

Tata Motors is facing strong competition in the EV market, a slowdown in the commercial vehicle segment, and margin pressures from discounting strategies. The company must stabilize its CV business, innovate in EVs, and ensure JLR’s successful transition to an electric luxury brand.

By executing the right strategies, Tata Motors has the potential to recover from its current decline and reach a new all-time high in the coming years. Investors will be watching closely to see how the company navigates these challenges and capitalizes on future growth opportunities.

Disclaimer:

The information provided in this article is for educational and informational purposes only and should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance does not guarantee future results. Readers are advised to conduct their own research or consult with a qualified financial advisor before making any investment decisions. The author and Sensexnifty.com are not responsible for any financial losses incurred based on the information provided in this article.