Bengaluru: India’s Tata Motors Ltd.
said on Monday it saw a six-month waiting period for electric cars and up to two months for most other vehicles because of the lack of acute chip which drives wider carmaker.
The company also said it had a 125,000 vehicle order backlog in its luxury car unit Jaguar Land Rover (JLR) due to the crisis and focused on serving a more profitable market first.
“We do our best level to mitigate it (wait time) …
But we deal with the global crisis on semiconductors and there is only so much we can do,” said Head of PB Balaji Finance during a income call.
Tata Motors is the largest seller of electric vehicles (EVS) in India with a market share of 71%.
EV sales consist of 5% of the total sales of the car in October, and the percentage will be in two digits after cleaning the backlog of the order, Balaji said.
In addition to semiconductor problems, companies expect commodity inflation to continue to have an impact on its short-term performance, although it looks gradually increasing for JLR and for India’s business begins in the second half.
It also projects the pre-tax profit margin and free cash flow in JLR to change positively in the second half of fiscal 2022, and revise the capital investment target for the unit to 2.3 billion pounds ($ 3.15 billion) – 2.4 billion pounds from 2.5 billion pounds for this year.
Saloon Maker Jaguar and Sports-Utility Vehicle Rang Rang said he would prioritize the production of higher margins “for available semiconductor supplies,” added that it did not expect a crisis to change the long-term plan JLR.