Skip to content
Search

Latest Stories

Submit Guest Post

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.

Add EasternEye As Your Trusted Source
preferred source on google news

More For You

 Ryanair

Ryanair has revised its family seating policy following scrutiny from the UK's competition watchdog

iStock

Families can now sit together for free under Ryanair's new seating policy

  • Ryanair has revised its family seating policy after the UK's competition watchdog opened an investigation.
  • Parents will now be able to access free seats at the rear of the aircraft instead of paying a mandatory reservation fee.
  • The airline says the change will not affect its overall revenue.

Ryanair family seating policy is changing after the airline came under scrutiny from the UK's Competition and Markets Authority (CMA) over charges imposed on parents travelling with young children.

The budget airline said it will make free parent seats available at the rear of its aircraft for future bookings. The move follows a CMA investigation into whether Ryanair's previous family seating policy complied with consumer protection laws.

Keep ReadingShow less