Tata Motors - Supply Chain Issues A Near-Term Headwind: ICICI Securities
The logo for Tata Motors Ltd. is displayed on the front grill of a Tata Indica vehicle at a showroom. (Photographer: Abhijit Bhatlekar/Bloomberg News)

Tata Motors - Supply Chain Issues A Near-Term Headwind: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

ICICI Securities Tata Motors Company Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.