Tata Motors has witnessed a sharp decline of over 8% over the last four trading sessions. As of 12:42 PM on June 18, 2025, Tata Motors shares were trading at ₹678.75, after hitting an intraday low of ₹677 on the BSE. The continued fall in Tata Motors share has raised concerns among investors and analysts, especially in light of the recent developments from its UK subsidiary, Jaguar Land Rover (JLR).

Why Is Tata Motors Share Price Falling?

1. Lower Guidance from JLR

One of the primary reasons behind the fall in Tata Motors share is the lowered guidance provided by JLR during its recent Investor Day meeting. The company warned of lower profit margins for FY 2025-26, attributing it to:

Heavy investments in electric vehicles (EVs)
Model upgrades
Macroeconomic headwinds

JLR now expects zero free cash flow for FY26, which has dented investor sentiment and put pressure on Tata Motors share price.

2. Weak Global Demand and Tariff Issue

Further affecting the Tata Motors share are macroeconomic challenges such as:

Weak demand for premium cars in China
Slowdown in the global auto market
Ongoing US tariff tensions

JLR anticipates a 15% de-growth in the premium car segment, which adds to the negative outlook on Tata Motors share .

JLR’s Strategy and EBIT Margin Targets

Despite the current headwinds, JLR has projected an EBIT (Earnings Before Interest and Taxes) margin of 5–7% and is focusing on long-term improvement in cash flows and profitability. However, the near-term uncertainty has continued to weigh on Tata Motors share price in the stock market.

What Are Brokerages Saying About Tata Motors Share Price

Jefferies

Maintains an ‘underperform’ rating
Slashes target price to ₹600 from ₹630
Cites concerns over multiple business headwinds and slower CV (Commercial Vehicle) demand in India
Notes rising competition in the EV segment

Morgan Stanley

Maintains ‘equalweight’ stance
Target price: ₹715 per share
Acknowledges JLR’s stronger fundamentals than in past downcycles
Notes that FY26 earnings may face downgrades
Estimates FY26 EPS to be 8% below consensus

These brokerage insights have added to the pressure on Tata Motors share price, especially as the market adjusts to revised expectations.

Tata Motors Share Price Performance: Past vs Present

Over the past five years, Tata Motors share price has delivered multibagger returns of 620%, a significant achievement. However, the year-to-date (YTD) return has been disappointing, with the stock down by 8.5% as of June 18, 2025.

This contrast between long-term performance and short-term weakness is a key factor for investors evaluating the future of Tata Motors share price.

Conclusion: What Lies Ahead for Tata Motors Share Price?

The ongoing decline in Tata Motors share price reflects investor anxiety over reduced earnings outlook, macroeconomic challenges, and aggressive investment strategies by JLR. While the long-term fundamentals remain intact, short-term headwinds and cautious brokerages indicate potential volatility in Tata Motors share price in the near term.