Tata Motors shares drop almost 13% as company forecasts poor sales of Jaguar Land Rover in September quarter
- Shares of
Tata Motorsfell to ₹311 from ₹357 in one hour as the company reported that the sales of its subsidiary, Jaguar Land Rover, will be affected in the next quarter due to chip shortages.
- However, Jaguar Land Rover registered 68% growth in its retail sales of 1.24 lakh vehicles in June quarter.
- The company expects chip shortages for JLR production to remain throughout the year and beyond.
“Looking ahead, the chip shortage is presently very dynamic and difficult to forecast. Based on recent input from suppliers, we now expect chip supply shortages in the second quarter ended 30 September 2021 to be greater than in the first quarter, potentially resulting in wholesale volumes about 50% lower than planned,” said Thierry Bolloré, CEO at Jaguar Land Rover, in a press release.
The company expects the chip shortage to continue throughout the year and beyond.
AdvertisementThe COVID-19 pandemic has reportedly driven up demand for semiconductor chips for use in electronics such as computers, as people work from home, and suppliers are struggling to adjust.
The global chip shortage has hit nearly every industry that makes or uses tech-enabled products. Hence, the demand has gone up leading to severe shortages that could drag till 2023.
Further, the company expects negative earnings before interest, taxes (EBIT) in the coming September quarter.
Meanwhile, the company registered 68% growth in its retail sales wherein vehicle sales jumped to 1.24 lakh vehicles in June quarter compared to the corresponding period last year.
Retails were higher year-on-year in every key region including in the UK (+186.9%), Europe (+124.0%), Overseas (+71.0%), North America (+50.5%) and China (+14.0%).
Shares of Tata Motors ended 8.5% lower at ₹316.60 on July 6.
AdvertisementSEE ALSO: Groovy earned ₹15 crores just by selling juices during covid 19 pandemic (businessinsider.in)
Simple One electric scooter with 240KM range to launch on August 15: Price, features and everything else we know so far (businessinsider.in)
Popular on BI
- Apple is hiring engineers and interns for their tech team in India
- Actor James Michael Tyler, known for his role as Gunther on 'Friends,' has passed away at 59 from prostate cancer
- Apple is being sued by a San Francisco man for $1,383.13, the exact cost of his iPhone 12. He says the company refused to fix the device while it was under warranty.
- DDB Mudra Group launches a year-long mentorship program to nurture and empower a community of women leaders in the company
- JioPhone Next to launch this Diwali – specs, features and everything we know so far
- OYO IPO now faces a hurdle from a hotels lobby with 55,000 members, aside from Zostel
- Best nose pins for those without piercing in India
- Zika virus: Centre sends a multi-disciplinary team to Uttar Pradesh's Kanpur after a 57-year-old man dies due to the virus