Availability of semiconductors is improving: CFO of Tata Motors Group

28 Jul 2022 , 08:26 AM

According to PB Balaji, the chief financial officer of Tata Motors Group, the problem with the scarcity of semiconductors is improving and should continue to do so as each month goes by.

Due to a semiconductor shortage and the COVID-19 lockout in China, Tata Motors has declared a combined net loss of Rs4,951 crore for the June quarter.

In a telephone conference, Balaji stated: “In terms of the chip scarcity, we can see that things are beginning to loosen up. Domestically in particular, we are not planning for any substantial chip-related challenges”.

He continued, “Undoubtedly, there is still a lot of rushing about, fighting fires, and working late, but it is nothing compared to the size of the problem we faced even three months ago. In India, that “.

In a similar vein, he stated that there is “far more visibility coming through” for JLR now as opposed to a few months ago.

Regarding the company’s demand for electric vehicles in India, he stated that it “does expect this penetration to continue to keep expanding and would not be surprised if it crosses double digits by end of the year.”

The company sold 9,300 passenger electric car units in the first quarter that concluded on June 30, 2022, making up 7% of all passenger vehicle sales.

“As a result, we continue to be fairly confident about our EV game plan. The consumer is ready and willing to migrate, as the most recent introduction of Nexon EV Max has just further demonstrated. It all depends on how much we can give. Consequently, supply rather than demand is the difficulty “Added he.