Jaguar Land Rover (JLR), the UK's largest carmaker, has announced that it will cut production at two of its factories due to a global shortage of computer chips.
The company said it would reduce output at its Castle Bromwich and Halewood plants for a "limited period" starting from Monday.
The chip shortage, which has affected several industries, including automotive and consumer electronics, has been caused by a combination of factors such as surging demand, supply disruptions, and trade tensions.
JLR said it is working closely with its suppliers to resolve the issue and minimize the impact on its customers.
"Like other automotive manufacturers, we are currently experiencing some supply chain disruption, including the global availability of semiconductors," a JLR spokesperson said in a statement.
The company did not specify how many vehicles will be affected by the production cuts but said it would continue to monitor the situation and adjust its plans accordingly.
JLR, which is owned by India's Tata Motors, employs about 40,000 people in the UK and sells more than half a million vehicles a year globally.
The company has been investing heavily in electric vehicles (EVs) as part of its strategy to become carbon-neutral by 2039.
In February, JLR announced that it will make all its Jaguar models fully electric by 2025 and that it will launch six pure electric Land Rover models over the next five years.
The company also said it will phase out diesel engines from its range by 2026 and that it aims to achieve net zero carbon emissions across its supply chain, products, and operations by 2039.
JLR's move to embrace EVs comes amid a growing shift in consumer preferences and regulatory pressures towards cleaner and greener mobility.
According to a report by BloombergNEF, global sales of EVs are expected to grow from 3.1 million in 2020 to 14 million in 2025 and 31 million in 2030.
The UK government has also set a target to ban the sale of new petrol and diesel cars by 2030 and hybrids by 2035 as part of its plan to achieve net zero emissions by 2050.