MARKET EYE-Tata Motors shares slump on fears of China's fuel norms

Thu Mar 21, 2013 4:04am EDT
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MUMBAI, March 21 (Reuters) - * Shares in Tata Motors Ltd
 fall as much as 5.6 percent on worries that China's
new stringent fuel economy standard would adversely impact the
Indian auto maker's Jaguar Land Rover Ltd (JLR) unit
* The rules announced on Wednesday would cut passenger cars'
average fuel consumption to 6.9 litres per 100 kilometres by
2015 and to 5.0 litres by 2020 in China. 
* A spokesman for Jaguar Land Rover could not immediately
comment when reached by Reuters.
* China contributes about 20 percent of JLR's revenues and
nearly 40 percent of its operating profit, analysts estimate,
raising worries that the company may have to invest more to
comply with the new norms.
* News that BMW budgeting for more discounts in 2013
was also seen affecting the stock. 
* Tata Motors shares down 3.5 percent at 0802 GMT.

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