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A brand is seen on a wheel of a Skoda automobile throughout the Prague Autoshow in Prague, Czech Republic, April 13, 2019. REUTERS/David W Cerny

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PRAGUE, Nov 1 (Reuters) – Volkswagen (VOWG_p.DE)-owned Skoda Auto stated on Monday it’ll make a couple of quarter of 1,000,000 fewer vehicles than anticipated this 12 months as a consequence of a scarcity of semiconductor chips.

It stated it anticipated the chip scarcity to stabilise this quarter and steadily ease within the second half of 2022.

Carmakers globally have taken sharp output cuts this 12 months as provide chain disruptions and booming demand for shopper electronics have led to an acute scarcity of chips essential in powering digital units.

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Czech-based Skoda’s manufacturing traces got here again on line on Sunday after a two-week outage attributable to the chip scarcity however the firm stated on Monday that it might nonetheless must reduce manufacturing over the approaching weeks.

“This 12 months, the corporate expects that it will be unable to provide roughly 250,000 autos by the top of the 12 months as a consequence of lacking components,” it stated in an announcement because it reported nine-month earnings outcomes.

The shortages began having an impression on its manufacturing within the third quarter, it stated.

“The corporate anticipates that the state of affairs relating to the availability of semiconductors will stabilise once more from the fourth quarter 2021 onwards and can then (be) steadily easing within the second half of 2022,” Skoda stated.

Tata Motors Ltd (TAMO.NS), proprietor of Jaguar Land Rover, additionally stated on Monday that it continued to be hit by the chip scarcity and Skoda’s dad or mum Volkswagen warned final week of the impression of the scarcity on its enterprise. learn extra [ read more

Skoda’s Chief Executive Thomas Schaeffer said in a newspaper interview published on Monday that Skoda expected to be producing at “almost full capacity” in November and December after the previous drops, if parts are available.

The company said it delivered 700,700 vehicles globally in the first nine months of this year, down 2.9% year-on-year, while deliveries outside China rose 8.5%.

Skoda reported revenue of 13.3 billion euros ($15.39 billion) for January-September, up 10.7% from a year earlier, and said operating profit nearly doubled to 900 million euros. Production was disrupted during periods last year due to coronavirus-related lockdowns.

Earlier this year the carmaker said it had tens of thousands of cars in stock that were nearly finished but were awaiting chips. Dealerships have reported months-long waits for new cars.

($1 = 0.8641 euros)

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Reporting by Jan Lopatka; Editing by Susan Fenton

Our Standards: The Thomson Reuters Trust Principles.

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