(Bloomberg) -- Tata Motors Ltd.’s shares are set for their longest losing streak in 16 years as UBS Group AG said rising discounts would hurt the earnings of the British maker of luxury SUVs.

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The Indian company’s shares fell as much as 6.2% in a ninth day of declines, the longest run of losses since October 2008. The stock was the worst performer on the benchmark NSE Nifty 50 Index on Wednesday, and trading of its options surged to a record.

The plunge came as UBS warned Jaguar-Land Rover order book is weak and fresh bookings lag behind supply. The weakness in Jaguar business, which largely derives its revenue outside of India, will add to headwinds facing domestic carmakers amid weak demand and piling inventories. Tata Motors cut prices of some vehicles this week.

“We would not be surprised if the incentives for Range Rover — JLR’s apex model — start rising soon from near-zero levels,” UBS analysts Pramod Kumar and Nikunj Mandowara wrote in a note. Rising discounts, moderating growth and a lack of new launches in non-EV categories may led to “significantly weaker” financials for the next fiscal year, they said.

UBS maintained its sell rating on the company, with a target price of 825 rupees, implying a more than 20% loss from Tuesday’s closing price.

Bearish options volume on Tata Motors surpassed 775,000 contracts, with about 495,000 calls and 280,000 puts traded. The calls — September 1,000 calls were the most active — sank in value, while the puts rose.

--With assistance from Satviki Sanjay and Cecile Vannucci.

(Updates to include options trading in second paragraph)

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