Morgan Stanley keeps a neutral stance on Tata Motors' passenger vehicles, setting a target price of INR 340, due to weakening sales trends at its subsidiary Jaguar Land Rover. Despite robust wholesale figures, US retail sales for JLR declined significantly in March, indicating a concerning trend.

Tata Motors' Jaguar Land Rover (JLR) saw a 14.5% decrease in wholesale vehicle sales in Q4 FY26 compared to the previous year, with 95,300 units sold. Similarly, retail sales were down 14.3% YoY, totaling 92,700 units during the same period.

Tata Motors' passenger vehicle sales have suffered a setback due to increased tariffs, intense competition from Chinese rivals, and the phase-out of Jaguar models. Additionally, production issues stemming from a recent cyber attack have further impacted their full-year volumes.

Tata Motors reported a significant 37% increase in sales for Q4 FY26, with over 200,000 vehicles sold. Notably, electric vehicle (EV) sales saw an impressive jump of 43%, reaching nearly 92,000 units, fueled by strong demand for SUVs, CNG, and EV models.