Morgan Stanley has lowered its target price on Tata Motors to Rs 240 from Rs 291 and maintained its "equal-weight" rating on the stock.
The investment bank said Tata's Jaguar Land Rover's product cycle is entering a "slow phase," while India's medium and heavy commercial vehicle cycle is "weak", and the environment for luxury cars is becoming "more competitive."
Morgan Stanley added that although volumes are "holding up well" in the key China market, its survey shows the "underlying trend in terms of discounts, inventory, and customer traffic is deteriorating."
Tata Motors shares were last up 0.9 per cent at Rs 242.15 in a sluggish Mumbai market.
Copyright Thomson Reuters 2012
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