Tata Motors share price: Tata Motors shares fell over 3% in early trade on Wednesday, extending their losses. During early morning trade on Wednesday, the stock fell as high as 3.36 percent to Rs 306.30 on the BSE and Rs 306.25 on the National Stock Exchange (NSE). At 11:42 a.m., Tata Motors’ stock was trading at Rs 312.00, down Rs 4.95 (1.56%) on the BSE, and at Rs 312.00 on the NSE.
The Tata Motors stock went into a spiral on Tuesday, erasing early gains and plunging nearly 8% lower on both markets, prompted by a selloff near the close of the trading day.
Jaguar Land Rover (JLR), the automaker’s UK affiliate, announced a 68.1 percent increase in retail sales for the quarter ended June 2021, to 124,537 vehicles. It sold 74,067 units in the first quarter. At 84,442 units, wholesales were up 72.6 percent year over year (excluding China JV). However, due to semiconductor supply difficulties and the global auto industry’s impact from Covid-19, wholesales were roughly 30,000 units less than demand would have allowed, JLR stated in a statement.
According to the statement, “looking ahead, the chip shortage is currently very dynamic and difficult to forecast,” adding that “based on recent inputs from suppliers, JLR now expects chip supply shortages in the second quarter ended September 2021 to be greater than in the first quarter, potentially resulting in wholesale volumes about 50% lower than planned.”“While current supply constraints persist, the firm will continue to prioritize manufacturing of higher-margin vehicles for the available chip supply, as well as make chip and product specification changes wherever possible to mitigate the impact,” it stated.
“In the aforesaid scenario, we anticipate an operating cash outflow of around £1 billion and a negative EBIT (profits before interest and taxes) of roughly £1 billion.