JLR to increase retail sales in June Quarter
The April June quarter saw sales of 74,067 units in the previous quarter and saw1,24,537 retail sales by 30 June, almost doubting the last month’s sales.
In every key region such as the UK, Europe, China and North America. There were some conductor supply issues that lowered the demand. These issues affected the automobile industry around the world.
This also means that the economy has recovered post covid in the aforementioned countries. The present situation is still a challenge for the automotive industry, but the Chief Executive Officer of JLR says that they are hopeful the demand would increase.
The chip shortage is something that is extremely difficult to apprehend and changes are very rapid. It is expected that in September 2021, the chip supply shortage would end, but as said earlier, it’s very difficult to predict.
The full shortage is however expected to go by 12 to 18 months. JRS said that it mainly depends on the supplier’s investment in the new capacities. They also said they expect an operating cash flow of $1 billion with a negative EBIT, that is, Earnings Before Interest and taxes amount.
The current retails order is the highest the company has ever seen. JLR mentioned that for the security of the supply chain in future, they are taking strong steps now. They would now be working directly with the chip manufacturers and have considerable control over chip supply over their vehicles