Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Earnings
July 26, 2021 09:18 AM

Jaguar Land Rover owner Tata Motors reports quarterly loss on chip shortages

JLR expects semiconductor shortfalls in the next three months to increase

Bloomberg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Jaguar Land Rover owner Tata Motors reported a wider-than-estimated first-quarter loss as a global semiconductor shortage dragged down sales at the UK luxury unit.

    Tata Motors reported a loss of 44.5 billion rupees ($598 million) in the three months ended June 30, compared to an 84.4-billion-rupee shortfall a year earlier, the company said. Analysts had forecast a 21-billion-rupee loss, according to the average of estimates compiled by Bloomberg.

    Jaguar Land Rover reported a pretax loss of 110 million pounds ($152 million) on revenue of 4.97 billion pounds ($6.9 million). The division’s sales in China jumped 14 percent.

    Raw material costs for Tata Motors jumped to 373.1 billion rupees in the latest quarter compared to 99.4 billion rupees in the same period last year.

    "JLR now expects semiconductor supply shortages in the second quarter to be greater than in the first quarter, potentially resulting in wholesale volumes about 50 percent lower than planned," Tata said in a statement. "In the second quarter, JLR expects a negative EBIT margin with a free cash outflow of less than £1 billion. JLR expects the situation will start to improve in the second half of the financial year."

    Earlier this month, Jaguar Land Rover warned deliveries in the second quarter will be 50 percent worse than anticipated as a global chip shortage shows no sign of abating.

    The chip crisis forced the luxury automaker to temporarily suspend production at its Castle Bromwich and Halewood plants.

    Jaguar Land Rover's performance is crucial for Mumbai-based conglomerate Tata Group, after a devastating wave of COVID-19 infections and government-imposed lockdowns crimped demand in its home market.

    Jaguar Land Rover is working with suppliers and chip manufacturers to increase the visibility and the control of chip supply for its vehicles, Chief Financial Officer Adrian Mardell said in an investor call earlier this month. It's also prioritizing production of higher-margin vehicles and looking to change features on vehicles. That said, the automaker is not expecting the chip shortage to delay any "significant" launches, Mardell said.

    Under CEO Thierry Bollore, the former Renault chief who joined the UK automaker in September, Jaguar Land Rover is also planning to electrify its lineup and ditch combustion engines completely in four years, a move that will necessarily mean a higher reliance on more advanced semiconductors.

    Land Rover line will get its first full-electric model in 2024, and by the following year, all Jaguars will be entirely powered by batteries.

    RECOMMENDED FOR YOU
    VW's potential battery IPO attracts high investor interest, top shareholder says
    Recommended for You
    VW Battery production
    VW's potential battery IPO attracts high investor interest, top shareholder says
    cupra-born_01.jpg
    VW's Cupra brand weighs entering U.S. market with larger EVs
    The Ford Mach-E
    Ford expects to lose $3B on EVs this year
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us