Tata Motors losses continue amid chip shortage and low exports
INDIA’S Tata Motors announced a seventh consecutive quarter of losses last Wednesday (9) as chip shortages and weak demand in export markets hurt sales.
Net losses at the Mumbaiheadquartered automaker narrowed to `9.45 billion ($116 million/ £99m) in the July-to-September quarter, compared to a loss of `44.42bn in the same period last year.
But revenue from operations rose nearly 30 per cent year-onyear to `796.11bn, as wholesale demand improved despite continued supply chain bottlenecks, such as semiconductor chip shortages. “Demand continues to remain strong,” the company said in a stock exchange filing, but warned it remained vulnerable to “global uncertainties”.
Covid-19 lockdowns in China have also hurt sales this year.
But Tata Motors said “improving chip supply and cooling commodity prices” will aid business recovery in the quarters ahead. Revenues at British subsidiary Jaguar Land Rover (JLR) rose 35.9 per cent to £5.26bn in the quarter as production of new Range Rover models improved, but it still lost £173m.
“Demand for our most profitable and desired vehicles remains strong,” JLR chief Thierry Bollore said. “We expect to continue to improve our performance in the second half of the year, as new agreements with semiconductor partners take effect.”
Pending orders at JLR stood at 205,000 units at the end of September, as chip supply constraints persisted. Revenue from Tata Motors’ commercial vehicle business jumped 35 per cent year-on-year to `164.20bn, as India bounced back from a 2021 pandemic sales dent.