Tata Motors Group is better equipped to face the challenges of the supply chain deriving from the clash in Corso Israel-Iran, the Chinese restriction of exports of magnets of rare lands and the global tariff war, having learned from the semiconductor crisis during the Covid-19 pandemic, said officials of the best companies on Tuesday. Jaguar Land Rover (JLR), the British arm of the company who is facing a steep tariff excursion for exports to the United States, is not considering the idea of creating a plant in America to face the local demand, Tata Motors The CFO group PB Balaji told journalists during the interaction of the company’s media.
The automotive supply chains have undergone a good dose of shock test with the semiconductor crisis that arrived in the period 2022-23. Therefore, there are many intrinsic learning that companies have overcome. There are many resiliences of the supply chain that have been built since then, it observed.
“Internally, we are equipped to elaborate it better. This does not mean that we will not have a problem. It only means that we will be able to face it better and we will only have to leave … (the) Time plays in terms of more developments that are simultaneously in progress,” Balaji said when he was asked when the impact on the supply chain was requested due to the war in western Asia, the projections of China on the exports of the rare earth.
On the Se Jlr plans to create a production unit in the United States to overcome the steep excursion in the rates, Balaji said: “As for the production footprint, there are no plans in this moment for any site of any kind. We have to be careful what is no longer necessary to pay attention to what is no longer necessary that there are no longer.
However, he recognized that there will be an impact on JLR sales in the United States due to the greater rate.
“I expect a little narrowing of the volume. It will inevitably be there due to the rates that are there. Before it was 2.5 percent. Now it will be 10 %. So, up to that point, there will be a certain degree of elasticity of the demand,” he added, adding that JLR will sell about 1 Lakh units in the United States from the United Kingdom.
The company will undertake the activation of the market “to mitigate some aspects of the stress of the demand that could be there,” said Balaji, adding that JLR would also refer to the question in other parts of the world such as the United Kingdom, Europe and the Middle East, where the impact of Israeli war “would not have been very difficult to see”.
Due to the rate in the United States, JLR will also have to face “an impact on costs” and is putting a program to manage it, which will start now and will probably take another 12-18 months to achieve this fully operational “.
For a question that China’s restrictions on rare lands exports have impactful on JLR production, he replied in the negative affirmation “We are not pressing any panic button and there is no reduction in production” and JLR managed to be managed through the inventory together with alternative sources and supplies at the moment.
Likewise, Tata Motors Passenger Vehicle Ltd and Tata Passenger Electric Electric Mobility Ltd, CEO, Shailesh Chandra, said: “We are at ease for the next few months more from the point of view of actions (of rare lands)”.
He also said that Tata Motors did not change his launch plans EV despite China’s restrictions on rare lands exports.
“There is hope, and there are a series of actions that are internal that make us at ease in not changing any of our launch plans. If there is a significant deterioration of this problem in the future, then we could rework, but at this stage we have absolutely no trigger to change our plans.”
Chandra said that the company has already launched Harrier.ev and the expected launch of Sierra.ev is on the right road.
To overcome the challenge, he said that the automotive industry faced the problem with the Government and India ambassador to China to solve the problem.
“Frankly, in the short term, this is the only solution that in the end will solve it. We are very confident, given the support of the government on the subject. From halfway through the long term, there are more solutions and we are working with the government in terms of a certain series of efforts to be more self -sufficient and there are more alternatives,” said Chandra.
He also said: “In the medium term, I think we will have to look for some alternative sources, alternative countries”.
For a question about the delay in the launch of electric vehicles under the Avinya brand, Chandra said: “In the middle of 2022 we were optimistic about the fact that in a year and a half, we would have been able to come with this type of launch, but it had to undergo certain changes of architecture in some subsystems. He brought more time than we needed.”
Electric vehicles under the Avinya brand are now scheduled at the end of 2026 or at the beginning of 2026.
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