Tata Motors slumps on fears of China's fuel norms
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)
- Tweet this
- Share this
- Digg this
- Alabama man claims penis was amputated by mistake
- Russian military likely reluctant participants in Ukraine-US general
- UPDATE 2-U.S. says Russia firing artillery over border at Ukraine military
- India blocks WTO deal on customs rules as deadline nears
- UPDATE 4-Liberian man in Lagos being tested for Ebola
India blocked an agreement on new global customs rules on Thursday, angering fellow members of the World Trade Organization who say Delhi's veto could be costly, economically and politically. Full Article