Tata Motors is in talks with various players in vehicle scrappage eco-system for supplying its technology to set up new centres across the country. The ecosystem generally includes vehicle fitness centres, scrapping centres, OEMs and ancillary players
PB Balaji, CFO, Tata Motors Group informed reporters during a conference call after the announcement of the Q1FY2022 results that Tata Motors is looking to set up 2-4 vehicle scrappage units before expanding to around 10 units in the coming years. “The technology will be provided by Tata Motors” said Balaji, adding that it is the dealerships which will run these centres. Moreover, it will be used for vehicles belonging to all OEMs.
Tata Motors consolidated net loss narrows in Q1 FY2022
Meanwhile Tata Motors reported consolidated net loss narrowed down to Rs 4,451 crore in Q1 FY2022 as compared to Rs 8.438 crore during Q1FY2021. The total revenue in Q1 came in at Rs 66,406.05 crore, up 107.6 percent year-on-year.
The EV business continues to grow rapidly and delivered 5 times revenue growth and highest quarterly sales at 1,715 units. The company is looking to launch 10 EVs by 2025.
JLR's Q1FY2022 revenue came in at 5 billion pounds sterling, up 73.7 percent year-on-year compared to Q1FY2021. According to the management, the shortage of semiconductors is a constraint and the situation is very dynamic and difficult to forecast. JLR now expects the semiconductor supply shortage in Q2FY2022 to be greater than Q1, potentially resulting in wholesale volumes to dip nearly 50 percent compared to what’s planned. Thierry Bollore, CEO, Jaguar Land Rover said, “Though the current environment continues to remain challenging, we will continue to adapt and manage elements that are within our control.”.
Tata Motors CFO Balaji, however reiterated that the semiconductor shortages for the domestic market is not as serious as it is for the JLR business. The company expects the demand situation to improve despite pandemic uncertainty impacting the short-term.