Jaguar Land Rover’s (JLR) proprietor Tata Motors introduced a shock quarterly lack of greater than $1bn (£700m).

It got here because the Indian firm wrote off $2.05bn associated to its revamp of the UK-based luxurious automobile enterprise.

It additionally warned {that a} world semiconductor scarcity at the moment are impacting manufacturing plans for the present quarter.

Final month JLR briefly halted manufacturing at its two most important factories in Britain on account of a scarcity of chips.

For the quarter that ended on 31 March, Tata Motors reported a internet lack of $1.04bn, in comparison with analysts’ expectations of a $365.4m revenue.

That was whilst JLR’s gross sales in China jumped by 127% from a 12 months in the past and Tata Motors’ general retail gross sales, which account for many of its income, rose 12.4%.

The corporate additionally mentioned that JLR had saved round $426m through the quarter below its ‘Undertaking Cost’ turnaround plan.

Like different main carmakers around the globe, Tata Motors has been compelled to droop some operations due to the chip scarcity.

The coronavirus disaster has pushed a shift to working, studying and socialising from dwelling, which has boosted demand for laptops and different gadgets that use semiconductors.

The scarcity has compelled the world’s largest carmakers, together with Toyota, Nissan, Common Motors and Ford, to chop manufacturing.

This week, Toyota introduced that it will briefly cease manufacturing at two of its crops in Japan subsequent month.

Final month, JLR made an analogous transfer, saying in a press release: “We’ve got adjusted manufacturing schedules for sure automobiles which implies that our Fort Bromwich and Halewood manufacturing crops will probably be working a restricted interval of non-production from Monday twenty sixth April.

The worldwide motor business was already reeling from the sharp downturn in gross sales brought on by the pandemic and the challenges of switching to electric-powered automobiles.

In February, Jaguar Land Rover introduced that its Jaguar model could be all-electric by 2025 and that it’s going to launch electrical fashions of its whole Jaguar and Land Rover line-up by 2030.

Carmakers are below strain to fulfill stringent carbon emission calls for in Europe and China, in addition to buyer demand for high-performance electrical automobiles with a luxurious or efficiency really feel.