Jaguar Land Rover inks partnerships to improve semiconductor supplies

Tata Motors-owned Jaguar Land Rover is stitching up partnerships to improve semiconductor supplies, as it looks to improve sales volume in the second half of the current financial year.

In the September quarter, the marquee brand reported revenue of 5.3 billion pounds and wholesale volumes (excluding China JV) of 75,307 units, up 18 per cent, as compared with the July-September period of last fiscal.

The automaker noted that despite strong demand and a record order book, sales during the second quarter continued to be constrained by the global chip shortage.

"Partnership agreements with several semiconductor suppliers and more in progress are expected to enable improving volumes in the second half of the financial year ending March 2023 and beyond," JLR said in its interim report for the second quarter and six-month period ended September 30, 2022.

Semiconductor supply continued to restrict production in the quarter but the production of New Range Rover and New Range Rover Sport improved with the wholesales of 13,537 units, up from 5,790 in the April-June quarter of the current fiscal, it added.

JLR noted that with strong demand continuing, the client order book at the end of the second quarter stood at 2.05 lakh units.

The company's three models, the New Range Rover, New Range Rover Sport and Defender account for over 70 per cent of the order book, it added.

Elaborating on the other elements, which could have an impact on business, JLR said that inflation remains at elevated levels, exacerbated by the Ukraine conflict and post-Covid supply disruption.

The company is working to offset this through cost reductions, it said.

Besides, the central banks are responding to inflation globally with increases in interest rates, which may lead to increased costs for consumers who purchase the company vehicles using finance, the brand noted.