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Shares of Tata Motors are down by nearly two percent after Thierry Bolloré, the CEO of Jaguar Land Rover (JLR), tendered his resignation due to personal reasons.

At 11:16 am shares of Tata Motors were at Rs 473, down by 1.73 percent from the previous close on the BSE.

According to a statement released by Tata Motors, Bolloré will be leaving the company on December 31. Adrian Mardell will be taking over as Interim CEO of JLR from today.

"I am immensely proud of what we have achieved together at Jaguar Land Rover over the last two years. I would like to thank the whole team for their dedication and passion and I wish the entire organisation the very best for the future,” Bolloré said.

Also read: JLR tax charge widens Tata Motors loss to Rs 5,007 crore

In September 2020, Bolloré replaced Ralf Speth as CEO. During his investor presentation, JLR's CEO promised to become one of the world's most profitable luxury manufacturers by 2039, while also becoming net-zero carbon.

Bolloré’s resignation has come at a time when JLR is already going through a time of financial weakness. The company lowered the financial guidance for the year after poor Q2 performance resulting from the shortage of specialised semiconductors.

Also read: Tata Motors's JLR makes fewer retail sales than peers but this brokerage believes it can compensate

In the earnings call last week, Tata Motors said JLR fell short of its sales target of 90,000 units due to the chip shortage – the luxury carmaker managed to sell only 75,000 units during the quarter.

JLR now expects to maintain a marginally positive EBIT margin for the current fiscal, compared with the earlier guidance of 5 percent. JLR’s EBIT margin for the July-September at 10.3 percent, down 230 basis points quarter-on-quarter.

Also read: Tata Motors near a 3-month low as JLR struggles for free cash flow, gets JPMorgan downgrade

First Published:Nov 17, 2022 12:50 PM IST