Tuesday, November 02, 2021
By Manoj Kumawat
Waiting Period For EVs May Extend Up to Six Months
According to domestic carmaker Tata Motors, the waiting period for electric cars and other vehicles may extend up to six months and two months respectively due to an excessive shortage of semiconductor chips. The sources of the company also said that it has a backlog of more than 1,25,000 units of its luxurious Jaguar Land Rover cars due to chip shortage. In the words of the company’s Chief Financial Officer PB Balaji, "We are doing our level best to mitigate it (the waiting time)... but we are dealing with a global crisis on semiconductors and there is only so much we are able to do".
With a 71% share, Tata Motors is the largest seller of electric vehicles in the country. In the month of sales made by the company in the month of October, 5% of the sales were recorded by the electric vehicles. The percentage would be double once it clears its existing backlog. According to PB Balaji, “Besides semiconductor issues, the company expects commodity inflation to continue to impact its near-term performance, though it is seen improving gradually for JLR and for India businesses starting in the second half”.
Commenting on the production of Jaguar and Range Rover sports utility vehicles the carmaker said, it will focus on the production of vehicles with high-margin. It also said that the shortage of chips will not impact its long-term plans for the expansion of JLR in India.
