Mumbai, Maharashtra
Tata Motors Ltd. has reported a loss of Rs 44.5 billion in the quarter ending June 30, 2021. It is in comparison to the Rs 84.4 billion shortfall that was registered last year.
Analysts had predicted a loss of Rs 21 billion based on average estimation. This loss is due to the ongoing semiconductor shortage that hit the automobile industry.
The cost of raw materials for Tata Motors has risen to Rs 373.1 billion compared to Rs 99.4 billion in the same period last year.
However, Tata Motors informed that Jaguar Land Rover (JLR) expects the semiconductor situation to worsen in the second quarter compared to the first, resulting in a 50% decrease in the wholesale volume. The chip crisis has forced the luxury automaker to temporarily suspend production at its plants at Castle Bromwich and Halewood.
Jaguar Land Rover is working with suppliers and chip manufacturers to increase the availability and the control of chip supply for its vehicles.
Adrian Mardell, Chief Financial Officer, JLR, informed that the company is also prioritising the production of higher-margin vehicles. He added that JLR plans to change features on its vehicles, and the chip shortage wouldn’t pose an issue in case of significant launches.
Source – HT Auto
Image Source: Photo by Zakaria Zayane on Unsplash
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