tata motors: Lockdown in China may have an adverse impact on sales outlook in FY23: Tata Motors

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Listed Indian multinational automotive manufacturing company in its Annual Report said that the recent lockdowns in parts of China owing to the spread of COVID-19 are adversely impacting the company’s supply chains as its suppliers are unable to produce or deliver products to them. Tata Motors said that it is also witnessing a temporary decrease in demand.

The lockdowns in China have also led to some dealerships in some regions of China temporarily closing, which may have an adverse impact on our sales outlook in FY23, the company said.

“If we are unable to ensure a supply of critical parts from China for production, we may be forced to stop production in some or all of our plants, which will have a significantly negative impact on our cash flow in the future,” the company said in its report.

In-line with other automobile companies, Tata Motors has said that it continues to witness certain supply chain disruptions as a result of China’s lockdowns and dealership closures. “This will possibly result in negative EBIT and negative free cash flows in the first quarter of FY23 for Jaguar Land Rover while our domestic business is also likely to witness a negative impact on financial performance,” it said.

Over the next four years, Land Rover will be launching six all-electric variants, across two architectures. The company in its report said that this will help JLR to meet unprecedented policy shifts and an exponential rise in customer demand toward electric vehicles across its key markets.

As adoption increases, Jaguar Land Rover expects over 60% of global Land Rover sales to be pure electric by 2030.

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