Tata Motors tumbled 8.11% to Rs 448.40 at 14:05 IST on BSE on media reports that the company's British luxury car unit Jaguar Land Rover yesterday, 23 June 2016, began recalling 11,282 vehicles in China due to faulty crankshaft sensors.
Meanwhile, the S&P BSE Sensex was down 715.92 points or 2.65% at 26,286.30.
The stock tanked on heavy volumes. On BSE, so far 29.95 lakh shares were traded in the counter as against average daily volume of 7.60 lakh shares in the past one quarter. The stock hit a high of Rs 453.45 and a low of Rs 425 so far during the day. The stock had hit a 52-week high of Rs 489.60 yesterday, 23 June 2016. The stock had hit a 52-week low of Rs 266 on 11 February 2016. The stock had outperformed the market over the past one month till 23 June 2016, advancing 27.5% compared with Sensex's 7.02% rise. The scrip had also outperformed the market in past one quarter, gaining 29.46% as against Sensex's 6.57% rise.
The large-cap company has equity capital of Rs 577.44 crore. Face value per share is Rs 2.
Reports suggested that the recall affects 6,067 imported Land Rover Discovery 4 sport utility vehicles (SUVs) manufactured between April 2012 and October 2012. Apart from that, 5,214 imported Range Rover models produced between April 2012 and October 2012 and one New Range Rover car made on 9 May 2012 will be recalled. Jaguar Land Rover (JLR) will check all the affected vehicles and replace defective parts free of charge, reports suggested.
According to reports, faulty crankshaft position sensors may cause the engine to stall when driving. Some of the cars may even fail to start, reports added.
Meanwhile, the outcome of a referendum favoring UK's exit from the European Union (EU) sent shares of Tata Motors tumbling. Tata Motors derives majority of its revenue from JLR. JLR is the largest automotive manufacturer in Britain. It is one of the UK's largest exporters and generates over 80% of its revenue from exports.
Tata Motors' consolidated net profit jumped 201.6% to Rs 5177.06 crore on 18.8% growth in net sales to Rs 79926.12 crore in Q4 March 2016 over Q4 March 2015.
Tata Motors is a market leader in commercial vehicles in India. The company's British unit JLR sells premium luxury cars.
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