Tata Motors' JLR Continues To Face Headwinds; Motilal Oswal Stays Neutral On The Stock

JLR’s production problems began on Aug 31, when a cyberattack forced it to halt vehicle manufacturing across its three UK plants. Given that its internal systems were hacked, it was forced to shut down its production facilities for almost the entire month of Sep..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.We attended Tata Motors Ltd.’s analyst meet hosted by the management to give updates on various business segments. The company’s India PV segment is witnessing a pickup in demand after GST rate cuts, and management expects the segment to post 8- 10% growth in H2 FY26. Moreover, Tata Motors expects to outperform the overall domestic PV segment on the back of its new model launches, leadership in the compact SUV segment, and rising demand for its EV and CNG variants. In CVs, management expects demand to pick up in H2, backed by increased consumption and improving profitability of fleet operators. Synergy benefits with IVECO include complementary product and regional mix and commonality of sourcing and scale benefits. The demerger process is on track, with the effective date of Oct 1, 2025. After the completion of all formalities, its PV entity is likely to get listed first, followed by the CV entity. At JLR, the cyber incident has disrupted production for most of Sep’25, and hence it has lined up funding lines to ensure that sufficient working capital is available at all times. While JLR has now indicated a phased production start, it is likely to take some time for production to return to normalcy. Nonetheless, JLR is facing several headwinds, which include:tariff-led slowdown for exports to the US;demand weakness in key regions like Europe and China; and rising VME, warranty and emission costs. For the lack of any triggers, we reiterate our Neutral rating on Tata Motors with Sep’27E SoTP-based target price of Rs 686..Click on the attachment to read the full report:.Sudarshan Chemical Target Price Slashed As HDFC Securities Downgrades Stock To 'Sell' — Here's Why.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Tata Motors' JLR Continues To Face Headwinds; Motilal Oswal Stays Neutral On The Stock

While JLR has now indicated a phased production start after the cyber attak, it is likely to take some time for production to return to normalcy, adds Motilal Oswal.

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