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Tata Motors in the red over chip shortages

INDIA's Tata Motors, the owners of the Jaguar and Land Rover brands, reported a fourth consecutive quarterly loss, weighed down by higher commodity prices and the global chip shortage.

Microchips are a key component in car manufacturing but automakers around the world have been hamstrung by limited supplies due to semiconductor production cuts during the pandemic.


The Mumbai-headquartered firm reported a net loss of Rs 15.2 billion ($203 million) in the three months to December 31, it said in a statement, compared to a net profit of Rs 29.1bn ($390m) a year earlier.

"The auto industry continued to witness rising demand in most segments even as the supply of semiconductors remained restricted resulting in adverse impact on production," Tata Motors' executive director Girish Wagh said in a statement.

"The semiconductor supply situation is improving gradually whilst inflation worries persist," the company added.

Operational revenue slipped 4.5 per cent to Rs 722.3bn ($9.7bn) from a year earlier.

Retail sales for Tata Motors' British subsidiary, Britain's biggest carmaker Jaguar Land Rover, were "significantly constrained by chip shortages and low inventories" and fell 37.6 per cent year-on-year.

But the company's India business saw revenue rise by 43.3 per cent on the corresponding period, with sales up across all vehicle segments.

Its electric-vehicle arm reported a new quarterly sales high of 5,592 cars.

Shares in Tata Motors closed 4.04 per cent higher at the end of Monday's trade in Mumbai ahead of the earnings announcement.

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Russian oil producers

This also aligns with US sanctions on major Russian oil producers Rosneft and Lukoil, set to take effect on Friday.

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Reliance halts Russian oil imports at export refinery amid global pressure

Highlights

  • Reliance Industries has stopped importing Russian crude oil for its export-only refining unit at Jamnagar in Gujarat.
  • The European Union has barred the import of fuel made from Russian crude, starting January 2026.
  • India's crude oil imports from Russia have surged from 2.5 per cent before the 2022 Ukraine war to around 35.8 per cent in 2024-25.
Reliance Industries, owned by billionaire Mukesh Ambani, has stopped importing Russian crude oil for its export-only refinery at Jamnagar in Gujarat.

Reliance said the move aims to comply with an EU ban on fuel imports made from Russian oil through third countries, which takes effect next year. It also aligns with US sanctions on major Russian oil producers Rosneft and Lukoil, set to take effect on Friday.

"This transition has been completed ahead of schedule to ensure full compliance with product-import restrictions coming into force on 21 January 2026," Reliance said in a statement.

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