Tata Motors Expects Better Show In Q2 After JLR’s Dismal Performance In Q1
Tata Motors pins hopes on turnaround of JLR in Q2 to narrow losses
Tata Motors Ltd. aims to narrow its losses in the second quarter as the car makers' U.K. unit, Jaguar Land Rover ramps up performance.
The U.K.-based luxury care maker—that contributed nearly 60% to Tata Motors' overall sales in Q1—saw its revenue fall 7.6% sequentially and 11.3% year-on-year to 4.4 billion pounds due to chip shortages, lockdowns in China, and a slower-than-expected production ramp-up of the new Range Rover and new Range Rover Sport.
“Overall, on JLR, we’re disappointed with our performance in this quarter and aim to come back stronger in Q2, particularly on the new Range Rover and new Range Rover Sport ramp-up,” PB Balaji, chief financial officer of Tata Motors Group, said in a post-earnings conference today.
The company expects 90,000 dispatches from the luxury carmaker in the quarter ending September, the highest in last five quarters, Balaji said.
The company has 200,000 pending client bookings, with Range Rover, Range Rover Sport, and Defender accounting for over 60% of these orders, he said.
An improved set-up to respond to the semiconductor crisis will help the company achieve greater volumes and take advantage of the record order book in the second quarter, Thierry Bollore, chief executive officer of JLR, said in a statement.
The luxury car maker with market across globe including the UK, Europe and China, doesn’t see any significantly challenges emerging from the risk of recession in the U.S.
“At this point in time, we do not see any stress in demand from any part of the world,” Balaji told reporters in the conference. Even in China, which was marred with sporadic lockdowns due to Covid-19, the company doesn’t see any demand challenges in the luxury car category, he said.