Stock Market update: Tata Motors shares down by 1.03% after subsidiary, JLR reports weak sales in Q3

JLR retail sales declined 37.6% YoY to 80,126 units in October-December 2021.

Shares of tata motors deteriorated by 1.03% at Rs 502.05  (−5.20) at 12.58 pm today. The company’s shares have been witnessing a subsequent decline after weak retail sales by JLR in Q3. JLR retail sales declined 37.6% YoY to 80,126 units in October-December 2021, with China sales falling 6.9% and Europe sales down 6.8% QoQ.

Earlier in July 2021 Shares of Tata Motors fell almost 13% to ₹311 from ₹357, in an hour between 1:42 p.m. and 2:41 p.m, as investors were disenchanted after the company registered that the sales of its subsidiary, Jaguar Land Rover, will be affected in the next quarter due to chip shortages.

The COVID-19 pandemic has reportedly propelled up demand for semiconductor chips for usage in electronics such as computers, as people work from home, and suppliers are floundering to acclimate. The global chip deficit has hit about every industry that makes or uses tech-enabled products. Hence, the injunction has gone up leading to severe shortages that could drag till 2023.

Retails were higher year-on-year in every key region including in the UK (+186.9%), Europe (+124.0%), Overseas (+71.0%), North America (+50.5%) and China (+14.0%). Tata Motors’ consolidated casualty broadened to ₹4,441.57 crores in the September quarter compared to ₹314.45-crore loss reported in the same quarter of FY21. The automobile major glimpsed consolidated revenue from operations expanded 14.6 per cent to ₹61,378 crores (₹53,530 crores).

 

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