Shares of Tata Motors are under selling pressure

Tata Motors Ltd., India's top commercial vehicles maker, remained under selling pressure on Wednesday after the company's monthly sales numbers fell below market's expectations.

Total vehicle sales at Tata Motors were flat at 40,680 units in August versus 40,880 units in the same month last year. Passenger car sales showed a 19 percent rise to 9,814 units versus 8,229 units Medium and Heavy Commercial vehicle sales rose 31 percent to 12,017 units last month. Exports rose 16 percent to 5,202 units in the past month. But Light Commercial Vehicle sales dropped 25 percent to 12,267 units in August 2015.

Tata Motors fell 3.25 rupees, or 1 percent, to 326.6 rupees on the National Stock Exchange, where 22.13 lakh shares were traded compared with the 5-day average of 1.07 crore shares. The stock was trading at 1.45 times its book value of 228 rupees.

Tata Motors has seen its market capitalisation fall 36 percent in one year to 95,160 crore rupees in the past one year, as its sales of luxury vehicles in China plunged owing to a slowdown in that economy.
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