JLR retail sales drop over 18% YoY in in Q2 Jul-Sep 2021

Tata Motors said that Jaguar Land Rover (JLR) retail sales for the three-month period to 30 September 2021 continued to be constrained by the impact of the global semiconductor shortage on production.

The wholesales for the period, however, were in line with July guidance, the company said. Underlying demand for Jaguar Land Rover products remains strong with order books at record levels, it added.

JLR's retail sales for the second quarter ending 30 September 2021 were 92,710 vehicles, 18.4% lower than the 113,569 vehicles sold in Q2 last year. Of the total retail sales, Jaguar sales were 19,248 units (down 29.6% YoY) and Land Rover sales were 73,462 units (down 14.8% YoY) during the period under review.

Retails were lower year-on year in most regions, including North America (down 15.6%), China (down 6.3%), Europe (down 17%), and in the UK (down 47.6%), but were up in the Overseas region (up 10%).

In line with July guidance, Q2 FY22 wholesales totalled 64,032 units (excluding the China JV), down 12.8% year-on year. As with retails, wholesales were lower year-on-year in all regions apart from the Overseas region (up 40.5%).

Despite the impact of the semiconductor shortage on production and sales, the company continues to see strong demand for its products with global retail orders at record levels in excess of 125,000 vehicles.

Lennard Hoornik, chief commercial officer, Jaguar Land Rover, said: The global semiconductor supply issue represents a significant near-term challenge for the industry which will take time to work through.

At the start of November, Jaguar Land Rover expects to report unaudited results for the three months ending 30 September 2021. At the end of the period, the company had about 3.8 billion of cash and short-term investments (unaudited), after the issuance of a $500 million 8 year 5.500% and 500 million 7 year 4.5% bond in July.

Despite the continuing semiconductor supply constraints, Jaguar Land Rover expects to report a free cash outflow of under 0.7 billion for the quarter, significantly better than the 1 billion outflow initially anticipated.

Total liquidity at the end of the second quarter is expected of about 5.9 billion including a 2 billion undrawn committed revolving credit facility (RCF).

"Looking ahead, the chip shortage remains dynamic and difficult to forecast, however, the Company expects semiconductor shortages to gradually ease over about the next 12 months from here, the auto maker said in a statement.

Tata Motors is a leading global automobile manufacturer of cars, utility vehicles, pick-ups, trucks and buses.

The auto major's consolidated net loss contracted to Rs 4,450.92 crore in Q1 FY22 as compared to a net loss of Rs 8,437.99 crore in Q1 FY21. Total revenue from operations soared 107.63% YoY to Rs 66,406.45 crore in Q1 FY22.

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