Tata Motors skids after Q3 FY22 retail sales drop 38% Y-o-Y to 80,126 units

Tata Motors slipped 1.48% to Rs 499.60 after its subsidiary, Jaguar Land Rover (JLR) recorded a 37.6% drop in retail sales to 80,126 units in Q3 FY22 over Q3 FY21.

Sequentially, Jaguar Land Rover (JLR), the subsidiary of Tata Motors, witnessed a 13.6% fall in retail sales to 80,126 units in Q3 FY22 from Q2 FY22. Jaguar Land Rover retail sales for the three-month period to 31 December 2021 continued to be constrained by the global semiconductor shortage, though the company started to see some improvement in chip supply and wholesale volumes compared to the preceding quarter.

Jaguar retail sales tumbled 48.7% to 14,407 units in Q3 FY22 as against Q3 FY21. Land Rover retail sales dropped 34.5% to 65,719 units in Q3 FY22 as compared to Q3 FY21.

However, Tata Motors further iterated that its underlying demand for Jaguar Land Rover products remained strong and the company had proactively managed semiconductor supplies to maximise production of higher margin products.

Retails were lower across all regions compared to the preceding quarter, including China (-6.9%), Europe (-6.8%), North America (-11.8%), UK (-24.3%), and Overseas (-25.4%). However, wholesale volumes stood at 69,182 units while production volumes were at 72,184 units in the period (both excluding China JV), growing 8% and 41% respectively as compared to the preceding quarter ending 30 September 2021.

The increase in production in particular reflected a start in improved chip supply. As compared to the preceding quarter, Range Rover wholesale volumes grew 91.8%, Range Rover Sport by 64% and I-Pace by 34.5%.

Retail sales for the calendar year 2021 were at 4,20,856, falling 1.2% as compared to the calendar year 2020.

Despite the impact of the semiconductor shortage on production and sales, Tata Motors continued to see strong demand for its products with global retail orders at record levels. The total order book has grown to over 1,54,000 units, up by about 30,000 orders from the prior quarter for the New Range Rover, while demand for the Land Rover Defender remained strong with about 36,000 orders.

At the end of January, Jaguar Land Rover expects to report unaudited results for the three months ending 31 December 2021. The initial estimated cashflow for the quarter is around 150 million positive. Looking ahead, the chip shortage remains dynamic and difficult to forecast, however, Tata Motors expects the supply to continue to improve in Q4 of the fiscal year ending 31 March 2022.

On a consolidated basis, Tata Motors' net loss stood at Rs 4,476.61 crore in Q2 FY22 as against net loss of Rs 343.28 crore in Q2 FY21. Net sales grew 14.4% to Rs 60,435.92 crore in Q2 FY22 over Q2 FY21.

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

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