Tata Motors, the
parent company of Jaguar Land Rover, mentioned that the global semiconductor
supply shortage would impact Jaguar Land Rover's performance. It added that the
sales would be affected with deliveries in the second quarter being 50% worse.
Bloomberg, Jaguar Land Rover said that the shortage was dynamic and difficult
to forecast and expected it to continue for a long time.
Shares of Tata
Motors dropped almost 10%, which was a large intraday slip in nearly three
months. The BSE and NSE markets too closed in the red zone.
The shortage of automotive chips began in December
2020 as consumer demand for personal devices soared amid COVID-19 lockdowns
worldwide. The chip shortage has redesigned the way auto manufacturers acquire
the electronic components, which are critical to contemporary vehicle designs.
Consulting firm AlixPartners had forecasted in May that the shortage could
slash $110 billion in sales from the car industry.
Source – Hindustan Times
Image Source: Unsplash