The semiconductor shortage issue is easing and we expect it to get better with every passing month. Tata Motors Group Chief Financial Officer PB Balaji said on Wednesday.
Tata Motors reported a consolidated net loss of Rs 4,951 crore in the June quarter as chip shortages and the COVID-19 lockdown in China hit Jaguar Land Rover sales.
"In terms of chip shortages, we see that things are starting to go downhill. Especially locally, we are not planning any major chip-related challenges," Balaji said in a conference call.
He further said: "Obviously there's still a lot of running around, putting out fires and working in the middle of the night, but it doesn't come close to the level of challenge we faced until three months ago. This is in India."
Likewise, for JLR he said that there is " much more visibility coming through" than there was a few months ago.
"So a clear easing has started and we expect this to continue only with each passing month because it is very clear that there is a slowdown in global demand for home appliances and mobile phones..." Balaji added.
"We expect to see the status of semiconductors decline with each passing month."
On demand for the company's electric vehicles in India, he said it remains strong and "we expect this penetration to continue to increase and we wouldn't be surprised if it crosses double digits by the end of the year."
In the first quarter ending June 30, 2022, the company sold the largest 9,300 units of passenger electric vehicles, accounting for 7 percent of total passenger vehicle sales.
"So we remain quite bullish on our EV game plan. The recent launch of the Nexon EV Max has shown that the consumer is ready and willing to migrate. It's a question of how much we can supply, so the challenge is to increase supply, not demand.
When asked about the deal to acquire Ford's Sanand plant, he said the parties are in the final stages of final agreements.
"We intend to complete the final documents in the coming weeks and close (the acquisition) by the end of this fiscal year."