Tata Motors JLR investor conference call.
‘Before the semiconductor issue: the wholesale expectations for H1 was 270,000 and now it is 150,000’
A mini thread 🧵👇
‘Before the semiconductor issue: the wholesale expectations for H1 was 270,000 and now it is 150,000’
A mini thread 🧵👇
1/ It will take us 12 to 18 months to get back to the Wholesale levels to support the current retail demand.
The semiconductor shortage is a huge issue, however a temporary one 🧗🏻
The semiconductor shortage is a huge issue, however a temporary one 🧗🏻
2/ No significant launches are being delayed due to these challenges.
The order book is currently at 110 thousand, covers only three of the five regions that the company caters to.
The order book is currently at 110 thousand, covers only three of the five regions that the company caters to.
3/ They are making all the products specification changes work efficiently with the lower chip supply.
Most other global OEMs are facing a similar issue: dip your expectations from the auto ancillaries that supply to them.
Most other global OEMs are facing a similar issue: dip your expectations from the auto ancillaries that supply to them.
4/ There is no delay on the Capex (£2.5B for FY22) as the demand projections are quite robust in the upcoming years.
Reasons for the sudden semiconductors shortage:
- Disasters in Japan and Texas: will come back by H2FY22
Reasons for the sudden semiconductors shortage:
- Disasters in Japan and Texas: will come back by H2FY22
5/
- The overall industry constraint is more of a consumer Phenomenon rather than an auto Phenomenon: Dependent on chip suppliers being able to add more capacity which will come online only in 12 to 18 months.
- The overall industry constraint is more of a consumer Phenomenon rather than an auto Phenomenon: Dependent on chip suppliers being able to add more capacity which will come online only in 12 to 18 months.
6/ There can be five companies in between the supply chain from the source of the semiconductor manufacturer and the OEM.
Imagine the fragility when COVID can hit anyone anytime from anywhere.
There are no order cancellations as of now.
End of Thread.
Imagine the fragility when COVID can hit anyone anytime from anywhere.
There are no order cancellations as of now.
End of Thread.
If you haven’t watched it already, do check out this excellent presentation on the Global Semiconductor Industry by @oraunak @PPFAS.
All checkout Mr. Raunak’s thread on the same for more reading material on this issue.
All checkout Mr. Raunak’s thread on the same for more reading material on this issue.
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