Tata Motors shares dropped to 6 percent in Wednesday’s trade after UBS reiterated its ‘sell’ rating on the stock with a target price of Rs 825, suggesting a downside of over 20 percent from the previous close.

This marks the stock’s steepest decline in over a month, with the last major drop occurring on August 5, when it plunged as much as 7 percent intraday.

By 12:10 pm, the stock was down 5 percent, trading at Rs 983.80, a decrease of Rs 51.65 per share.

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UBS pointed out that discounts on the company’s Range Rover Sport have become steep and are expected to rise further. Additionally, the brokerage noted a slowdown in demand for Tata Motors’ new models. It highlighted that the company’s order book has fallen below the pre-COVID period, raising concerns.

Considering the significant discounts and demand for ICE (internal combustion engine) and hybrid models, the brokerage anticipates a negative impact on the company’s financial performance in FY26. Moreover, margin erosion at JLR poses another key downside risk.

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