Tata Motors' stock dropped more than 4% on Monday due to lower sales of JLR

11 Oct 2022 , 09:41 AM

In intraday trading on Monday, shares of Tata Motors fell 4.5% to Rs393.70 on the BSE after the firm announced a lower-than-anticipated increase in wholesale volume for Jaguar Land Rover (JLR) of 4% quarter over quarter, at 75,307 units (excluding China JV), for the September quarter. However, JLR’s retail sales for Q2FY23 were 88,121, an increase of 12% over the previous quarter, led by growth in the Chinese, American, and global markets.

This improvement, according to Tata Motors, was less than anticipated, partly because one supplier’s supply of specialized chips was less plentiful than anticipated and could not be easily replaced in the quarter. New agreements with semiconductor suppliers are anticipated to enable sales gains in the second half of the fiscal year, the firm stated in a news statement. “This was largely alleviated by greater prioritization of manufacturing to the highest margin goods.”

Despite this, Tata Motors said that there is still a high demand for its goods, with worldwide retail orders once more breaking records in the quarter. The overall order book reached 205,000 units as of Q2FY23, an increase of about 5,000 orders from Q1FY23.

For feedback and suggestions, write to us at [e-mail]