Tata Motors falls 5% on weak China sales, strike threat - NDTV

New Delhi: Tata Motors shares fell as much as 5 per cent on Monday after sales at its subsidiary Jaguar Land Rover (JLR) grew at a slower pace than its competitors in the key China market. Jaguar Land Rover sales in China grew at 11 per cent in June, slower than 17 per cent growth clocked by Mercedes and 18 per cent growth reported by German major Porsche. China accounts for 20 per cent of overall Jaguar Land Rover volumes. Domestic brokerage IDFC said the sales number may impact Tata Motors' margins. The slower growth in China comes on the back of an 18 per cent decline in Tata Motors' overall sales in June. Analysts were also concerned about reports of a strike threat after delivery workers from logistics giant DHL demanded a large pay rise and simi lar terms and conditions at par with the Jaguar Land Rover staff. DHL, which has about 1,800 workers at JLR's three main factories, performs a key role in managing warehouse operations and bringing parts to production lines. Earlier in May, there were reports that luxury automobiles are likely to be taxed 20 per cent in China. The luxury tax is likely seen at least 1.7 to 1.8 million Yuan. At 12:06 pm, Tata Motors shares were down 4.8 per cent at Rs 140.80, underperforming the BSE Auto Index which was down 1.78 per cent. The stock also underperformed the broader Nifty and the Sensex which were down 1.20 per cent and 1.11 per cent respectively. Jaguar Land Rover, which Tata Motors purchased for $2.3 billion in 2008, accounts for nearly all of Tata Motors' profit. via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNHQpICAVuVc6AF5b55kv2ZTDR0N9Q&url=http://profit.ndtv.com/news/market/article-tata-motors-falls-5-on-weak-china-sales-strike-threat-324189

Put the internet to work for you. via Personal Recipe 2910127