Skip to content
Search

Latest Stories

JLR expects gradual recovery in semiconductor situation

JLR expects gradual recovery in semiconductor situation

TATA Motors-owned Jaguar Land Rover (JLR) expects the semiconductor shortage situation to gradually start recovering in the remaining part of the current financial year.

The British multinational automotive company in the meantime will continue to take steps to contain the impact of the shortage on its operations across the globe.


"Looking ahead, the supply shortage of semiconductors remains dynamic and difficult to forecast. However, JLR expects to see a gradual recovery starting in the second half of fiscal 2022," the automaker said in its interim report for the three and six-month period ended September 2021.

While the supply of semiconductors remains constrained, the company will continue to take mitigating actions, including prioritising the production of higher-margin vehicles and closely managing costs to reduce its break-even point, it added.

"Furthermore, Jaguar Land Rover is taking measures to increase the future visibility and control over semiconductor supply for its vehicles, working closely with semiconductor and tier 1 suppliers," the Whitley-headquartered firm noted.

JLR noted that the global economic recovery from Covid-19 continues but outbreaks in several regions, more recently in Southeast Asia, have impacted the supply base.

Besides, financial markets continue to trend upwards but the rebound in economic activity continues to drive inflationary pressures impacting many sectors including commodities, power, freight and wages, the automaker added.

It noted that the passenger car industry volumes continue to be constrained in most markets as a result of the continuing supply shortage of semiconductors, exacerbated by recent Covid-19 outbreaks in certain regions.

JLR, however, added that strong demand continues for its products with record orders in excess of 1,25,000 units, which should support a strong recovery for when production and supply of vehicles recovers.

In terms of new products, the sales of the new Range Rover, which was revealed in October, are expected to start in the fourth quarter of FY22, JLR said.

The automaker expects the EBIT (earnings before interest and tax) margin and free cash flow (before restructuring costs) to turn positive in the second half of the financial year 2022, it added.

In the second quarter of fiscal 2022, the company's total retail sales (including the China joint venture) stood at 92,710 units, down 18.4 per cent year-on-year, reflecting the semiconductor shortage and impact on retailer inventories.

(PTI)

More For You

Deliveroo posts first annual profit after 12 years

A Deliveroo rider near Victoria station in London, England. (Photo by Dan Kitwood/Getty Images)

Deliveroo posts first annual profit after 12 years

FOOD DELIVERY app Deliveroo announced on Thursday (13) its first annual profit as orders and revenue rose, while the 12-year old company sees further growth despite exiting Hong Kong.

The milestone follows sizeable full-year losses owing to high investment costs since American Will Shu founded the company in 2013 and made Deliveroo's first delivery in London.

Keep ReadingShow less
JLR-Tata-Getty

JLR had initially planned to manufacture more than 70,000 electric vehicles at the facility. (Photo: Getty Images)

JLR halts plan to build EVs at Tata’s India plant: Report

JAGUAR LAND ROVER (JLR) has put on hold plans to manufacture electric vehicles at Tata Motors’ upcoming £775 million factory in southern India, according to a news report.

The decision was influenced by challenges in balancing price and quality for locally sourced EV components, three of the sources said. They added that slowing demand for electric vehicles was also a factor.

Keep ReadingShow less
Government to abolish payments regulator to boost growth

Keir Starmer (R) and Rachel Reeves host an investment roundtable discussion with members of the BlackRock executive board at 10 Downing Street on November 21, 2024 in London, England. (Photo by Frank Augstein - WPA Pool/Getty Images)

Government to abolish payments regulator to boost growth

PAYMENTS REGULATOR will be abolished and its remit absorbed by another financial regulator, the government said on Tuesday (11), as it aims to cut red tape in favour of growth.

The Payment Systems Regulator (PSR), which oversees systems including MasterCard and bank transfers, tackles problems such as fraud, excessive fees and lack of competition among banks and payment providers.

Keep ReadingShow less
Boohoo

Boohoo’s shares, which have fallen by about 20 per cent this year, dropped 4 per cent on Tuesday. (Photo: Getty Images)

Boohoo rebrands as Debenhams after 21 per cent sales drop

BOOHOO has rebranded itself as Debenhams Group after sales from its young fashion brands, including Boohoo, MAN, and PrettyLittleThing, declined by 21 per cent to £947 million.

The move comes amid strong competition from Shein and a shift towards second-hand clothing among younger shoppers, The Guardian reported.

Keep ReadingShow less