Tata Motors has reported a consolidated net loss of Rs 4,951 crore in the June quarter as chip shortage and the COVID-19 lockdown in China affected Jaguar Land Rover’s sales.
In a conference call, Balaji said, “In terms of the chip shortage, we’re seeing things start to slow down. Especially domestically, we don’t plan on taking on any substantial chip-related challenges.”
He went on to say: “Obviously there’s still a lot of running, firefighting and midnight work out there, but it’s nowhere on a scale of the challenge we had even three months ago. That’s in India”.
Likewise, he said for JLR there is “a lot more visibility coming through” compared to what was there a few months ago.
“So there is a clear easing starting to come and we expect it to continue every month as there is a clear slowdown in global demand for white goods, mobile phones…” Balaji added.
“We expect the semiconductor situation to decrease every month.”
On the company’s electric vehicle demand in India, he said it remains robust and “we expect this penetration to continue to increase and it wouldn’t be surprised if it exceeds double digits by the end of the year”.
In the first quarter ended June 30, 2022, the company had sold the highest 9,300 units of electric passenger cars, accounting for 7 percent of total passenger car sales.
“That’s why we remain quite optimistic about our game plan on EV. The recent launch of Nexon EV Max just further proved that the consumer is ready and willing to migrate. It’s a matter of how much we are able to offer. So the challenge is more supply than demand,” he added.
When asked about the deal to acquire Ford’s Sanand plant, he said the parties are in the final stages of final agreements.
“Our intention is to finalize the final documents in the coming weeks and to finalize (of the acquisition) by the end of this fiscal year.”