Tata Motors slumps on fears of China's fuel norms

MUMBAI Thu Mar 21, 2013 4:56pm IST

Men walk inside a Tata Motors showroom on the outskirts of Agartala, capital of Tripura, November 7, 2012. REUTERS/Jayanta Dey/Files

Men walk inside a Tata Motors showroom on the outskirts of Agartala, capital of Tripura, November 7, 2012.

Credit: Reuters/Jayanta Dey/Files

Related Topics

Stocks

   

MUMBAI (Reuters) - Shares in Tata Motors(TAMO.NS) end down 4.22 percent after falling as much as 5.6 percent on worries that China's new stringent fuel economy standard would adversely impact the auto maker's Jaguar Land Rover Ltd (JLR) unit.

The rules announced on Wednesday would cut passenger cars' average fuel consumption to 6.9 litres per 100 kilometres by 2015 and to 5.0 litres by 2020 in China.

A spokesman for Jaguar Land Rover could not immediately comment when reached by Reuters.

China contributes about 20 percent of JLR's revenues and nearly 40 percent of its operating profit, analysts estimate, raising worries that the company may have to invest more to comply with the new norms.

News that BMW (BMWG.DE) budgeting for more discounts in 2013 was also seen affecting the stock.

(Reporting by Abhishek Vishnoi)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage