Tata Motors' losses have widened for the third consecutive quarter and the automotive bellwether has posted a consolidated loss of Rs 4,442 crore for in Q2FY2022 compared to a loss of Rs 314 crore in Q2FY2021. The net revenue however came in higher at Rs 61,379 crore, up 14.7 percent from Q2FY2021 revenue of Rs 53,530 crore.
Supply chain issues and commodity inflation impacted the company’s performance coupled with the semiconductor shortage and lower retailer inventories affecting JLR’s performance.
Retail sales for JLR was lower on a year-on-year basis in most region and down 18.4 percent on an overall basis. Retail sales of all models were lower year-on-year except for the new Land Rover Defender, which retailed 16,725 vehicles, up 70.4% year-on-year, making it JLR’s bestselling model in the quarter. The mix of electrified vehicles (BEV, PHEV and MHEV) reached 66%. Despite the impact of the semiconductor shortage on production and sales, the Company continues to see strong demand for its products with global retail orders at record levels of more than 125,000 vehicles.
Thierry Bollore, Jaguar Land Rover’s Chief Executive Officer, said, “The global semi-conductor shortage remains challenging but I’m pleased to see the actions we have been implementing reduce the impact. With strong customer demand with a record order book we are well placed to return to strong financial performance as semiconductor supply begins to improve. At the same time, we continue to execute our Reimagine strategy to realise the full potential of the business.”
Supply side challenges including semi-conductor issues and sharp commodity inflation continued in the domestic market too. In commercial vehicles, the focus of the company remains on growing market share (SCV in particular) and protecting margins amidst an inflationary environment. In passenger vehicles, the company will continue to enhance the sales momentum whilst improving profitability and managing supply bottlenecks. In electric vehicles, Tata Motors will drive up penetration and accelerate sales further and complete the conditions precedent for securing closure of the TPG Rise Climate investment and drawdown Tranche 1.
Girish Wagh, executive director Tata Motors said, “During the quarter, we accelerated the sales momentum to increase market share in every segment of commercial vehicles, recorded a decade high sale in passenger vehicles and delivered the highest ever quarterly sales in electric vehicles. Looking ahead, we expect the demand for commercial, passenger and electric vehicles to remain strong even as concerns about the supply of semiconductors and high input costs continue. We are taking definitive actions in the near-term to mitigate these. In parallel, we continue to progress our future-fit initiatives of transforming customer experience digitally and strengthening our lead in sustainable mobility.”