• Sunday, May 22, 2022

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Jaguar Land Rover reveals chips supply improved in first quarter

A file photo of Jaguar cars waiting for distribution at the Castle Bromwich manufacturing plant in Birmingham, England. (Photo by Christopher Furlong/Getty Images)

By: Pramod Thomas

INDIA’s Tata Motors-owned Jaguar Land Rover has said that its supply of semiconductors had improved in the first quarter, according to a report. 

It is viewed as a sign that a global shortage of computer chips is slowly starting to ease.

The British manufacturer reported sales of 76,526 vehicles during the three months to the end of March, an 11 per cent increase from the previous quarter, reported The Times.

According to the report, production volumes also rose by 15 per cent to 82,722 vehicles during the quarter.

The Covid-19 pandemic had a severe impact on the semiconductor industry as carmakers cancelled orders. However, when the demand in the motor industry revived, many manufactures had switched chip production to other purposes.

This was the major reason behind the shortage of chips for carmakers. It affected the industry badly as semiconductors are used throughout modern vehicles.

The Times report added that it forced car manufacturers to cut back on production. The unavailability of new vehicles has led to a price hike in second-hand cars. 

West Midlands-based Jaguar Land Rover said the chip shortage was still hurting retail sales, which dipped 1 per cent quarter-on-quarter to 79,008 and were 36 per cent lower than a year earlier.

The car maker added that sales have been hampered by low inventories at dealerships.

“We had enjoyed a gradual improvement in chip supply leading to improved production and wholesale volumes compared to the previous quarter. This is expected to continue through the next fiscal year,” the company said.

Wholesales for the 12 months to the end of March fell by 15 per cent to 294,182 vehicles compared with a year earlier and retail sales were 14 per cent lower at 376,381.

The report further said that Jaguar Land Rover’s order book remains at record levels and now stands at more than 168,000 units, an increase of about 14,000 since the end of December.

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