Jaguar Land Rover, Britain’s biggest car maker, has spluttered to a further quarterly loss due to ongoing chip shortages and said the problems would persist for the rest of 2022.
The UK car maker saw its retail sales fall 37.6% compared to a year earlier, as it produced just 80,126 vehicles in the quarter to the end of December.
JLR said that while production and sales remained “significantly constrained by semiconductor shortages”, it continued to see strong demand with global retail orders at record levels.
Despite that fall in production the company saw revenue of £4.7bn, up 22% on the previous quarter.
Manufacturers around the world have been hit hard as they struggle to secure supplies of semiconductors.
However, the company also warned that it expects the chip shortage to continue throughout this year but expect supplies to gradually improve.
Chips are vital to modern cars, with a number of features including touchscreen controls, automatic emergency brakes, reversing cameras, fuel efficiency equipment and airbag deployment systems all relying on them.
That helped push JLR’s Indian parent company Tata Motors to a 15.16bn rupees (£150m; $203.2m) loss for the period.