Demand and Supply: Demand remains strong in JLR, with a record order book of~127k units. The semiconductor shortage situation remains dynamic. However, JLR expects a gradual recovery starting 2HFY22, with higher production (by ~50k units) in 3Q from 2QFY22 levels. Inventory fell by 50k units YoY at the JLR and dealer level. Dealer inventory stood at 27k units. It will have to build 30-40k units of systemic inventory (of which 66% will at the dealer level), in addition to servicing its order book of~127k units. BEP stood at 85k units/quarter in 2QFY22. The management expects it to fall further to 70-75k in 3QFY22 due to a better mix. Underlying BEP will be less than 85k/quarter v/s 90k in 1HFY22 and 100k in FY21. Its refocus program has delivered GBP500m in 1HFY22 (GBP300m/GBP200m in market performance/investment savings), of which GBP300m was in 2Q alone (GBP150m each in market performance/investment savings). The management expects to further reduce average material cost p...