Global chip shortage continues to hurt JLR

GLOBAL shortage of semiconductor continues to hurt the production of Jaguar Land Rover (JLR), while car sales recover after the pandemic.

JLR, which brings in most of the revenue for the parent group Tata Motors, saw an on-year rise of 68 per cent in car sales, BBC reported.

However, the group company feels chip supply shortage could reduce the production to half by next quarter.

Thierry Bolloré, JLR chief executive, said the environment continued to remain "challenging".

However, he added that the firm had seen year-on-year sales growth in all regions of the world, "demonstrating the appeal of Jaguar and Land Rover vehicles".

In April, JLR was forced to temporarily halt production at its two main factories in the UK because of the lack of chips.

Other big carmakers, including Toyota, Nissan, General Motors and Ford were also been forced to cut production due to chip shortage.

Higher demand for laptops and other devices during the pandemic increased supply shortage of semiconductors, which is already facing a pent-up demand due to switch to electric-powered vehicles.

The coronavirus pandemic has driven a shift to working, learning and socialising from home that has boosted demand for laptops and other gadgets.

In February, JLR announced that its Jaguar brand would be all-electric by 2025 and that it will launch electric models of its entire line-up by 2030.

Globally, carmakers are under pressure to meet stringent carbon emission demands in Europe and China along with customers’ demand for high-performance electric cars.