Tata Motors’ stock dropped 10% to 316 per share in the final hour of Tuesday’s trading session on the BSE. The stock lost some of its early gains as JLR provided an update on the chip shortage situation, which could result in a reduction in output.
According to Tata Motors, the chip scarcity in the second quarter (Q2) would be bad than in the first, resulting in wholesale quantities that are fifty % percent lower than ever anticipated.
“In terms of the future, chip scarcity is now quite dynamic and impossible to predict.” We now expect chip supply constraints to be higher in the second quarter ended September 30, 2021, based on recent input from suppliers.
The current shortage of semi-conductor chip in future will lead to fifty % decline in production for JLR (Jaguar Land Rover) in the month of September
‘Jaguar Land Rover(JLR)retail sales for the three-month period to 30 June 2021 were very significant up year-on –year , reflecting the continuing up year in demand from COVID-19 pandemic , particularly compared to a year ago . However , wholesales in particular were lower than demand would have permitted due to semiconductor supply issue affecting the global auto industry ‘’ said the motor making company Tata Motors