Tata Motors Declares Quarterly Loss Amid Chip Scarcity, Inflation

India’s Tata Motors introduced its sixth straight quarter of losses Wednesday as inflation, Covid lockdowns in China and chip shortages harm gross sales volumes at British subsidiary Jaguar Land Rover (JLR).

Internet losses for the Mumbai-headquartered automaker widened to Rs. 50.07 billion ($626.6 million) within the June quarter, in comparison with a lack of Rs. 44.51 billion in the identical interval final 12 months.

Income from operations rose 8.3 p.c year-on-year to Rs. 719.35 billion with a post-pandemic demand bounce, whilst gross sales at JLR fell 11.3 p.c to $5.32 billion (roughly Rs. 42,394 crore).

Continued shortages of semiconductor chips — a key part in automobile manufacturing — along with COVID-19 lockdowns in China and rising uncooked materials prices harm JLR gross sales, the corporate mentioned.

JLR chief Thierry Bollore mentioned the agency had bolstered its organisational setup to reply to these headwinds.

“That is now beginning to recuperate manufacturing development to realize higher volumes and can enable us to benefit from our file order e-book,” Bollore mentioned in a press release.

Orders at JLR, Britain’s greatest carmaker, rose to 200,000 within the quarter.

Income from Tata Motors’ business automobile enterprise jumped 107.2 p.c year-on-year to Rs. 162.70 billion, as India bounced again from a 2021 pandemic gross sales dent.

However business automobile exports fell 22.6 p.c within the quarter, the corporate mentioned, resulting from weak demand in some abroad markets.

Demand for passenger automobiles remained sturdy, with revenues up 122.5 p.c on-year to Rs. 115.56 billion.

The corporate mentioned it bought 9,300 electrical automobiles within the quarter, 4 instances as many as in the identical quarter final 12 months.

“We anticipate demand to stay sturdy regardless of worries on inflation and geo-political dangers whereas the availability scenario is predicted to enhance additional,” the automaker mentioned in a press release filed to inventory exchanges.

Shares in Tata Motors closed 0.66 p.c increased in Mumbai forward of the earnings announcement.

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