Decline in JLR's sales for FY23

Jaguar Land Rover (JLR) owned by Tata Motors may face headwinds due to the lockdowns in China, which would eventually lower the sales for the coming year. The shortages of semiconductors restricts many companies in respective of sales. Tata Motors chairman N Chandrasekaran says that, even though they took necessary measures, the issue still continues to be challenging. The lockdown even led dealerships to close in some parts of China. The chip shortage still continues in the car industry because chip manufacturing industries reduced the production assuming that there would not be much of a sale after the initial lockdowns of Covid-19. To make an average chip, it would take around 12 weeks. As a result, chip manufacturing industries would take a minimum of 5 months time to get back on track. Since the chip manufacturing is a very complex process, setting up of new manufacturing units would be very expensive and time consuming.