Expect recovery, no delay in launches, capex: Jaguar Land Rover

NEW DELHI:  Tata Motors owned British luxury caremaker Jaguar Land Rover on Wednesday said that once there is improvement in semi-conductor shortage issue, the company will witness a dramatic rebound. However, JLR also informed that it may manage to produce only up to 150,000 units in April-September quarter as against previous estimate of 235,000 units. 

JLR added that the company has no plans to delay upcoming launches or reduce their capital expenditure planned for FY22. This announcement by JLR comes a day after the company had warned that its production in the September quarter could fall short by as much as 50% of the company’s previous expectation due to an acute shortage of semi-conductors chips. Following this announcement, shares of Tata Motors tanked by as much as 10% on Tuesday and ended flat on Wednesday.

“We have no plans to delay current launches as a result of any issue we see today. However, launch readiness and full production capacity is at least 9-12 months away,” Adrian Mardell, chief financial officer at JLR, told investors in a conference call. On Wednesday shares of Tata Motors closed at Rs 317.