Operating revenue declined 4.5 percent to ₹722.3 billion from a year earlier.
Mumbai:
Tata Motors, which owns the Jaguar and Land Rover brands, today posted losses for the fourth consecutive quarter, driven by higher commodity prices and global chip shortages.
Microchips are a key component in car manufacturing, but automakers around the world have been hit by limited supplies due to semiconductor production cuts during the pandemic.
The Mumbai-headquartered firm reported a net loss of ₹15.2 billion ($203 million) in the three months to December 31, compared to a net profit of ₹29.1 billion a year ago.
“The growing demand continued across most segments in the auto industry, even as the supply of semiconductors remained restricted, resulting in an adverse impact on production,” Tata Motors Executive Director Girish Wagh said in a statement.
“Semiconductor supply conditions are improving gradually, while inflation concerns remain,” the company said.
Operating revenue declined 4.5 percent to $722.3 billion ($9.7 billion) from a year ago.
Retail sales of Jaguar Land Rover, a British subsidiary of Tata Motors, Britain’s largest carmaker, were “significantly constrained by chip shortages and low inventory” and fell 37.6 per cent year-on-year.
But during the same period, the company’s Indian business reported a 43.3 per cent growth in revenue, with sales across all vehicle segments growing.
Its electric-vehicle arm reported a new quarter of sales of 5,592 cars.
Shares of Tata Motors closed higher by 4.04 per cent at the end of Monday’s trading in Mumbai ahead of the earnings announcement.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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