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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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5 key reasons from Knight Franks' wealth report on why the UK is losing its billionaires

  • Global ultra-wealthy population jumps over 300 per cent since 2021
  • UK billionaire count drops to 156, biggest fall in 37 years
  • Policy shifts, mobility and weaker investment appeal drive the change

A fresh global wealth snapshot shows just how sharply fortunes are rising. The number of individuals worth at least $30m (£22m) has surged from 162,191 in 2021 to 713,626 now, an increase of more than 300 per cent, according to analysis by Knight Frank. The billionaire population, currently at 3,110, is projected to grow by 25 per cent to 3,915 by 2031.

This rapid expansion is being fuelled largely by technology-led wealth creation. As Liam Bailey of Knight Frank reportedly said in a news report, the ability to scale businesses faster, particularly in sectors like artificial intelligence, is accelerating how quickly large fortunes are built.

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