Tech

Tata Motors warns of inflation and chip shortages as demand improves


Inflation and semiconductor shortages are the biggest challenges facing Tata Motors, Tata Motors’ chief financial officer said on Thursday, as Jaguar Land Rover (JLR) owners reported a need to be improve.

PB Balaji told reporters after Tata Motors reported a loss for the fourth quarter, China’s shutdown to address the surge in coronavirus cases also represents a new risk to the automaker.

“The two big worries are inflation and semiconductors. It’s going to be a challenging few months,” Balaji said, adding that Ukraine The crisis has aggravated the situation.

Tata Motors Still, the profit and cash flow targets will be met for the year, Balaji said, adding that a combination of chip shortages and strong demand has resulted in pending orders of about 168,000. car at JLR.

Automakers globally have resorted to gradual price increases in an effort to cope with transportation and raw material costs, which are denting profit margins for companies seeking to recover. after the pandemic.

Tata Motors raised prices at least four times in fiscal 2022, and Balaji said the automaker is at “the absolute advantage of our ability to raise prices.”

He added that raising interest rates by banks to curb inflation could also take a toll on demand.

Tata Motors reported a consolidated net loss of Rs. 1,033 crore, compared with a loss of 76.05 billion crore a year earlier. Its total operating revenue for the quarter fell 11.5% to Rs. 78,439 crore.

Tata Motors speak.

Meanwhile, its electric vehicle business is expected to deliver strong margins and profits in the current financial year, Balaji said, adding that the electrification plans for Tata Motors and JLR will require investment in batteries and cells.

Balaji said Tata Motors expects up to Rs. 6,000 crore capital expenditure in the current year.

© Thomson Reuters 2022




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