Jaguar Land Rover (JLR) proprietor Tata Motors says it’s nonetheless feeling the pressure of the worldwide semiconductor scarcity, however automotive gross sales are recovering after the pandemic.

JLR, which brings in a lot of the group’s income, noticed gross sales rise 68% year-on-year.

However Tata mentioned the chip provide scarcity was prone to worsen within the brief time period.

This meant that JLR manufacturing within the subsequent quarter may very well be minimize in half, it mentioned.

Tata’s losses for April to June narrowed to $598m (£432.7m), after a lack of greater than $1bn within the earlier three months.

Thierry Bolloré, JLR chief government, mentioned the surroundings continued to stay “difficult”.

Nonetheless, he added that the agency had seen year-on-year gross sales progress in all areas of the world, “demonstrating the enchantment of Jaguar and Land Rover automobiles”.

In April, JLR quickly halted manufacturing at its two principal factories within the UK due to the dearth of chips.

Different massive carmakers, together with Toyota, Nissan, Basic Motors and Ford, have additionally been compelled to chop manufacturing.

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

That has added to the woes of the worldwide motor business, which was already reeling from the sharp downturn in gross sales attributable to 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 line-up by 2030.

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