Chip shortage is likely to extend in the coming quarter and even worsen from the June quarter, according to Jaguar Land Rover, the British subsidiary of India-based Tata Motors.
The company warned of production cuts by 50pc than pre-planned output levels. The availability of semiconductors, however, could improve by H2 of the fiscal year along with demand, the company believes.
JLR currently holds 110,000 global retail orders- the highest the company has recorded ever.
Gradual economic recovery has pushed consumers to return to JLR showrooms driving double-digit sales compared to the prior year.
Sales in Q1 (April-June)
Retail sales for three months in the June quarter rose significantly compared to the prior-year period as markets continued to improve. A total of 124,537 units were sold, registering a 68pc rise as compared to Q1 last year.
Sales in the UK rose by 186pc while those in Europe were up by 124pc. Sales in North American and China jumped by 50pc and 14pc, respectively.