Tata Motors shares fell nearly 4 percent intraday on July 1 after subdued sales performance in June 2019.
The stock has lost 40 percent in the last one year. It was quoting at Rs 163.65, down Rs 4.20, or 2.50 percent on the BSE at 1421 hours IST.
Tata Motors said its commercial and passenger vehicles business sales in the domestic market witnessed a drop of 14 percent at 49,073 units in June 2019 on continued subdued demand.
The company had sold 56,773 units in same month last year.
The cumulative sales during April-June also narrowed 20 percent to 1,31,879 units, the company said.
Commercial vehicles (CV) sales at 35,722 units registered a drop of 7 percent in June YoY.
“The market continued to exhibit subdued demand sentiment as customers are postponing purchases given the poor freight availability, the falling freight rates affecting their viability. The slowing down of the economy is hurting overall customer sentiments and causing an impact on demand for fresh vehicles,” Tata Motors reasoned.
Its passenger vehicle sales also plunged 27 percent to 13,351 units due to low customer sentiments on liquidity crunch.
“Industry continued to remain stressed; however the market is expected to bounce back soon,” the company said.