Tata Motors shares slipped on the stock market on July 6, 2021. The company’s share price went down up to 10% and hit the lower circuit, Share price was 8.52% down before closing the market.
The main reason behind this is, the subsidiary of tata motors JLR (Jaguar & Land Rover) announced that their production can go down by 50% in July to September period.
Due to global shortage of semiconductor chips company has decided to limit the production.
the company highlighted that its Jaguar Land Rover (JLR) division will see negative earnings before interest and taxes (EBIT) margins in the September quarter (Q2FY21).
In addition to this, It is said that there will be improvement in the second half of this financial year. Apart from this in Apri-June quarter company’s retail sales has grown by 68.1% in comparison of last year.
JLR is one of the important subsidiary of Tata Motors as the 80% of revenue comes from JLR.