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As the number of daily COVID-19 cases hit a record high in China, Tata Motors stock is under the radar again amid fears that the pandemic may disrupt Jaguar Land Rover’s (JLR’s) operations in the country.

China is one of the key markets for JLR, the UK subsidiary of Tata Motors, both in terms of sales volume and manufacturing. JLR’s China sales made up 27 percent of its overall sales in the financial year 2022.

In fact, the country’s contribution to JLR’s total sales increased further to 31 percent in the second quarter of the current financial year (including the sales of JLR’s joint venture in China).

Also Read: Tata Motors shares tumble as auto giant's quarterly net loss shocks the Street

China JLR’s quarterly sales rose significantly to 27,848 units in the September quarter compared to 22,536 units in the year-ago quarter and 18,840 in the June quarter. Therefore, any impact on JLR’s China operations has the potential to significantly affect the company’s sales outlook for the current financial year.

Earlier in June 2022, Tata Motors had flagged similar concerns in its annual report when it said that JLR was facing headwinds due to lockdowns in China due to COVID-19. The company said that its supply chains were adversely affected due to suppliers' inability to produce or deliver products along with a temporary decrease in demand.

Also Read: Jaguar Land Rover CEO Thierry Bolloré has resigned: Tata Motors

On Wednesday, China recorded 31,454 domestic cases of COVID-19 with 27,517 cases without symptoms. Though no city-wide lockdowns have been announced, the widespread restrictions are paralysing economic activities, even as authorities pledge to make their responses more targeted and less disruptive.

Tata Motors shares, meanwhile, are trading at Rs 421.80, down 0.53 percent.

Also Read: Tata Motors hikes rates of passenger vehicles

(Edited by : Rukmani Krishna)