Investment Bank Credit Suisse has downgraded Indian auto major Tata Motors after the company announced disappointing results for Q1. Tata Motors announced 12% increase in net profit for Q1 at Rs 2245 crore.

Credit Suisse has cut the target price for Tata Motors to Rs 218. The rating has been downgraded from "neutral" to "underperform". The vehicle sales estimates for JLR for year 2013 have been decreased from 374k units to 365k units.

The company expressed concerns over economic conditions and expects lower volume of sales for the upcoming quarter. Jaguar Land Rover unit of Tata Motors is facing pressure on margins. The company recorded 30 per cent increase in revenue compared to first quarter last year.

Market experts expressed concerns over lower margins. The automobile market has been very competitive in India. The company can only look forward to better sales if the new launches are successful. M&M has recorded very good sales volume as the new car launches helped the company to increase its market share.