Chip shortage to affect Tata Motors' near-term profitability
JLR’s wholesale volume rose by 72.6 per cent year-on-year to 84,442 units in the June 2021 quarter after losing nearly 30,000 units due to supply constraints.
Synopsis
The projected earnings for the full year may be trimmed by 30-40 per cent at the consolidated level thereby limiting the upside potential of the stock.
ET Intelligence group: The stock of Tata Motors fell by 8.4 per cent in the past two trading sessions after the company said that chip shortage at the UK subsidiary Jaguar Land Rover (JLR) in the second quarter of FY22 is greater than in the first quarter. This would shrink the production by 50 per cent for the second quarter than the earlier estimate of 1.2 lakh units. The projected earnings for the full year may be trimmed by 30-40 per cent at
