Tata Motors Limited on Thursday issued a statement on the Bombay stock exchange saying that the recent issues at UK ports due to fears of a new strain of COVID-19 have no immediate impact on the operations and guidance for its subsidiary Jaguar Land Rover.
Reassuring its stakeholders, the company said that it sees no such impact for the time being.
The company said: "Jaguar Land Rover has comprehensive contingency planning and actions in place to respond to ongoing COVID challenges and disruption. This is subject to constant review. Recent issues at UK ports have had no immediate impact for Jaguar Land Rover. Our guidance of improved growth, profitability and cash flows in second half of the year continues to hold."
Due to concerns over a new fast-spreading strain of COVID-19, the UK government announced a fresh lockdown, which disrupted logistics at key ports and led to chaos across the country's border with France. According to reports, thousands of truck operators rushed for fresh COVID tests, stalling truck movement and leading to a huge pile-up at ports in the UK.
A large part of the company's sales volume growth depends on Jaguar Land Rover, UK revenues but with the new spread it was anticipated that JLR, owned by Tata Motors, would take a hit for the worse, and take the Indian motor company's stocks down with it.
Tata Motors share price fell by over 3% earlier this week amid reports of a new mutant strain of Coronavirus, which is allegedly even more transmissible, spreading rapidly in the United Kingdom.
Tata Motors shares on Thursday were up 5.35 per cent at 72.85 on the Bombay stock exchange at around 1.15 pm.
