BENGALURU, Sept 11 Reuters Shares of Tata Motors  India39;s largest carmaker by revenue fell 5.6 on Wednesday to log their thirdworst day this year after UBS said rising discounts could hurt the results of Jaguar Land Rover JLR, its British luxury car division.

This is the stock39;s steepest decline in a ninesession losing streak where it has lost 12.8. It is the top laggard on the benchmark Nifty 50 and Nifty Auto indexes.

Rising discounts, moderating growth and a lack of any new internal combustion engine and hybrid launch could result in significantly weaker financials for JLR for fiscal 2026, UBS said in a note.

The luxury JLR division is Tata Motors39; bellwether, accounting for about twothirds of its revenue. Among JLR39;s cars, the Range Rover, Range Rover Sport and Defender models are its most marginboosting variants as they are more expensive.

The brokerage expects discounts for both the Range Rover and Range Rover Sport to rise, with JLR39;s order backlog below levels last seen before the COVID19 pandemic.

JLR39;s wholesales volume in the first quarter grew 5, its slowest in two years, due to weaker demand in its key European market.

In a bid to capitalise on festive season demand, Tata Motors announced discounts of up to 205,000 rupees 2,442.28 on its cars in India on Monday.

UBS is one of Tata Motors39; biggest bears, with a sell rating on the stock and a Streetlow price target of 825 rupees, a 15.6 discount to its current price of 977.8 rupees.

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