The CLSA had added Tata Motors to the list only about two months back.

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At 1:30pm, Tata Motors shares were trading at ₹614.95 on the Bombay Stock Exchange (BSE). This was a drop of 5.98% or ₹39.10 from the previous close.

The stock's intraday low so far is ₹613.20, while the high was ₹650.95.

At the same time, it was also the stock which fell the third-most on the Nifty Auto Index, which as a whole, had dropped by 2.46%, reaching 20,642.90.

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It followed Samvardhana Motherson International which was down by 7.41%, trading at ₹119.39, and Bharat Forge, which was down by 6.42%, trading at ₹1,045.40 on the National Stock Exchange (NSE).

CLSA also downgraded Tata Motors back to a regular “outperform” rating. It also cut its price target by 18%, from ₹930 to ₹765, according to an India Today report.

One of the reasons why CLSA might have downgraded the automaker is due to a drop in Jaguar Land Rover (JLR) sales, with the company stating that the US tariffs which came into effect recently as well as the discontinuation of some Jaguar models, could lead to a 14% drop in JLR’s sales in the financial year 2025-26, according to the report.

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CLSA also expects Tata Motors' margins to drop to 7% in 2026-27, compared to the 9% it is expected to achieve this year, and it has also lowered its estimate for JLR’s EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) for the financial year 2026.