JLR warns of lower Q2 volumes, downgrades outlook due to chip shortage

Company sees semiconductor shortage deepening in the September quarter of the current financial year.

Tata Motors has halved the volume outlook for its UK subsidiary Jaguar Land Rover Automotive (JLR) and warned of lower earnings as it sees the semiconductor shortage deepening in the September quarter of the current financial year, according to a notification issued by the company to the stock exchanges on Tuesday.

The announcement caught investors unawares. They were hoping for a quicker recovery.

Tata Motors’ stock tanked 13 per cent from the day’s high of Rs 358.10 and hit the lower circuit (Rs 311.45) in intra-day trades. Subsequently, it erased some losses and closed at Rs 316.95 apiece, down 8.41 per cent