It seems that automobile sector is facing a tough time, as it has been reported that shares of auto major Tata Motors Ltd dropped by 2.2% at Rs 721.10 earlier today.

It has been claimed that collaborative pressure from rising fuel prices and rising interest rates has significantly damaged the Indian auto industry.

Confirming the news that macroeconomic factors have affected the sales of passenger cars in the past few months, PM Telang, the Managing Director of India operations, claimed that Company would be doing its best for the stakeholders and customers.

As of now, Tata Motors has the Indica eV2, which gives 25 kilometers per liter, though: “We are coming out with Indigo eCS and hopefully some more vehicles which will be highly fuel efficient", said Telang.

If reports are to be believed, global sales for Tata Motors was at 85,392 units in July, down six per cent as compared to the same month last year, while in the luxury brand from Jaguar Land Rover, sales were a bit disappointing at 19,119 vehicles in July.

In consequent to this, forced Morgan Stanley trim down the price to Rs 974 from Rs 1,324, though it maintained its 'NEUTRAL' rating on the stock.