A new and stable government at the Centre seemed to have bolstered consumer sentiment, as buyers returned to showrooms — the nine passenger vehicle manufacturers that released their numbers on Tuesday sold a combined 204,287 units in the month, compared with 173,624 in June 2013.

Tata Motors' ordinary and Class A shares - which carry a 10th of the voting rights - are "materially undervalued" and worth atleast Rs 700 apiece, London-based Knight Assets said in a statement on Wednesday. They traded at Rs 445.8 and Rs 293, respectively, at 11:43 am in Mumbai.

Ankush Arora, senior vice-president (commercial) passenger car business; S Jayaraman, assistant general manager, product planning; V Mamillapalle, head of purchases; and Rajesh Bagga, head of human resources (HR) and legal, were the recent resignations. Prabir Jha, head of HR, had quit last year.

By 9:30, the Sensex was lower by 2 points at 25,189 and the Nifty slipped by 3 points at 7,531 mark.

On the global front, Asian shares struck a cautious tone on Tuesday as the double-whammy of a deepening conflict in Iraq and a gas dispute between Ukraine and Russia sapped investors' appetite for risk.

The capex is part of respective medium-term strategies of the different companies covering all the business sectors of the group, ranging from engineering, materials, information technology and communications, consumer products, services, energy to chemicals.

“We too have had to curtail production. Frequency of orders from Tata Motors has been reducing due to high inventory at their Nano plant. As a result, we had seen inventory piling up at our plants,” said a vendor supplying electrical parts to the Sanand plant.

In the passenger vehicles category, the global sales last month were at 48,414 units, as against 43,142 units in May 2013, up 12.2 per cent, Tata Motors said in a statement.

The Jaguar brand sold 6,450 units, up 4%, while the Land Rover sold 32,381 units, a growth of 23%, the company said in a statement.