JLR expects semiconductor situation to pick up from second half of fiscal 22
Jaguar Land Rover (JLR), owned by Tata Motors, expects the semiconductor shortage situation to gradually begin to recover over the remainder of the current fiscal year.
In the meantime, the British multinational automobile company will continue to take measures to contain the impact of the shortage on its operations around the world.
“Looking ahead, the semiconductor shortage remains dynamic and difficult to predict. However, JLR expects a gradual recovery from the second half of fiscal 2022,” the automaker said in its report. intermediate for the period of three and six months. completed in September 2021.
While the supply of semiconductors remains limited, the company will continue to take mitigation measures, including prioritizing the production of higher-margin vehicles and tightly managing costs to reduce its break-even point, he added.
“Additionally, Jaguar Land Rover is taking steps to increase future visibility and control of semiconductor supply for its vehicles, working closely with semiconductor and Tier 1 vendors,” the company noted. based in Whitley, Coventry.
JLR noted that the global economic recovery from COVID-19 continues, but outbreaks in a number of regions, most recently in Southeast Asia, have impacted the supply base.
In addition, financial markets continue their upward trend, but the rebound in economic activity continues to generate inflationary pressures affecting a number of sectors, including commodities, electricity, freight and wages, has he added.
The automaker noted that passenger car industry volumes continue to be constrained in most markets due to the continued shortage of semiconductor supplies, exacerbated by recent outbreaks of COVID-19 in some. regions.
He added, however, that strong demand continues for his products with record orders exceeding 1,25,000 units, which should support a strong recovery as vehicle production and supply pick up.
In terms of new products, sales of the new Range Rover, which was unveiled in October, are expected to begin in the fourth quarter of fiscal 22, JLR said.
The automaker expects EBIT (profit before interest and tax) and free cash flow (before restructuring costs) to turn positive in the second half of fiscal 2022, he added.
In the second quarter of fiscal 22, total retail sales of the company (including the Chinese joint venture) were 92,710 units, down 18.4% year-on-year, reflecting the semiconductor shortage and the impact on retailer inventories.
Retail sales were down year over year in most regions including North America (15.6%), China (6.3%), Europe (17%) and the UK -United (47.6%).
The automaker noted that retail sales of all models were down year over year except for the new Land Rover Defender, which retailed 16,725 vehicles, up 70.4 % year over year, making it its top-selling model in the quarter.
In the second quarter, the company’s revenue was £ 3.9 billion, down 11.1%, mainly reflecting lower sales.
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