Tata Motors on Wednesday posted a dismal update on third-quarter Jaguar Land Rover (JLR) sales, which continue to be constrained by semiconductor shortages.
However, Tata Motors said JLR’s sales improved from the second quarter. “Underlying demand for Jaguar Land Rover products remains strong and the company aggressively manages semiconductor supply to maximize production of higher-margin products,” Tata Motors said in a filing.
Retail sales for the quarter ended December 31, 2021 were 80,126 units, a decrease of 13.6% (12,600 units) from the previous quarter and a decrease of 37.6% (48,300 units) from a year earlier.
Compared to the previous quarter, retail sales declined in all regions, including China (-6.9%), Europe (-6.8%), North America (-11.8%), UK (-24.3%) and overseas (-25.4%) %)
“Looking ahead, chip shortages remain and are difficult to predict, but we expect supply to continue to improve in the fourth quarter of the fiscal year ending March 31, 2022,” Tata Motors said.
Despite the impact of semiconductor shortages on production and sales, the company said demand for its products continued to be strong, with global retail orders at record levels.
Total orders for the new Range Rover have grown to more than 154,000 units, an increase of around 30,000 units from the previous quarter, while demand for the Land Rover Defender remains strong at around 36,000 units. Shares of Tata Motors rose 1 percent to close at Rs 506.30 on the NSE on Wednesday.
“The new Range Rover embodies Jaguar Land Rover’s vision for modern luxury design. We are delighted that the positive feedback at launch has led to a strong order book for this all-new modern luxury model. In addition, Land Rover Defender continues to support our all-electric Jaguar I- Contributing to the record order pool next to PACE. Semiconductor supply challenges continue within the industry, but our wholesale volumes are improving. As supply improves in 2022, we look forward to completing deliveries to customers around the world,” said Jaguar Land Rover chief Commercial officer Lennard Hoornik said.
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