Tata Motors hit by chip shortage
Tata Motors Limited reported that its Jaguar Land Rover business was hit by a global shortage of semiconductor chips.
Headquartered in the city of Mumbai, India, Tata Motors is an Indian multinational automobile manufacturer and part of the Tata Group.
The company produces passenger cars, trucks, vans, coaches, buses, luxury cars, sports cars, and construction equipment.
In particular, Jaguar Land Rover sales continued to be constrained by chip shortages, with retail sales of 80,126 vehicles in its third quarter of fiscal 2022 (October-November 2021), this is 37.6% less than in the third quarter of the year fiscal 2021.
According to Tata Motors, the chip shortage is gradually improving with production volumes of 72,184 units, up 41% from the second quarter of FY2022 and wholesale sales of 69,182 units up 8% from the second. quarter of fiscal year 2022.
Chip shortage
For the third quarter, Jaguar Land Rover’s revenue was £4.7bn, up 22% from the second quarter of fiscal 2022.
On the other hand, as for its Tata Motors Limited business, the operations in India showed a significant improvement in revenue compared to the third quarter of the previous year.
However, commodity inflation affected margins.
As a result, Tata Motors Limited reported an EBIT of -1.7% percent.
The photovoltaic business continued its recovery and strengthened its double-digit market share with the highest sales in any calendar year since its inception.
Going forward, demand remains strong despite short-term concerns over the Omicron spread.
The semiconductor supply situation is gradually improving as inflation concerns persist.
Over the last two years, the resilience of the business has improved and is now inherently stronger, according to the company.
With concerted actions in place to address near-term supply and cost challenges, the company expects performance to improve further in the fourth quarter of fiscal 2022 and beyond.
