Tata Motors - Supply Chain Issues A Near-Term Headwind: ICICI Securities
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ICICI Securities Report
Tata Motors Ltd. hosted an investor call to address investor concerns on chip shortages and its impact on both vehicle production and financials. Key highlights of the concall:
Wholesales were 84,442 units (excluding the China joint venture) against planned ~1,15,000 units (~27% lower) for Q1 FY22.
The chip shortage issue is likely to dip wholesales to 60-65,000 units in Q2 against planned ~1,20,000 units (H1 plan prior to chip shortage issue was for ~2,35,000 units). The revised schedules from chip suppliers came in late June 2021.
System inventory as of Q1 stood at ~74,000 units, with Q2 production limited to 55-60,000 units, wholesales are likely to remain at 60-65,000 units against the growing order book of ~1,10,000 units.
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