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JLR owner Tata Motors posts quarterly loss -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – Two men walk into a Tata Motors showroom in Agartala on the outskirts, India’s northern state of Tripura. November 7, 2012. REUTERS/Jayanta Dey

BENGALURU(Reuters), Jaguar Land Rover (JLR), owner Tata Motors (NYSE: ) announced a third quarter loss on Monday. This was due to high commodity prices and shortages of semiconductors.

After a temporary recovery to the end of 2020, automakers all over the globe have been affected by the shortage in chips, supply chain disruptions, COVID-19 regulations, and rising raw materials prices.

The company stated that JLR’s retail sales, which account for the majority of Tata Motors revenue, dropped 37.6% from the previous year and that production volumes increased 41% sequentially.

Tata Motors, in a Monday exchange filing said that the semiconductor shortage would continue into 2022. However, it will gradually get better as more capacity is available.

For the quarter ending Dec. 31, 2015, the consolidated net loss was 15.16 billion Rupees ($203.23 Million). This compares to a profit at 29.06 billion rupees one year ago when sales increased due to an ease in coronavirus-related restrictions.

The recovery however was temporary as supply chain disruptions and acute semiconductor shortages delayed production. Tata Motors then slipped back into losses.

($1 equals 74.5950 Indian rupees).

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