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Tata Motors to reduce component suppliers for PVs

The company, which had embarked on turning around its struggling domestic business in June last year, has around 600 parts suppliers for the PV segment.


PTI 07 Aug 2018, 08:25 AM India
  • Khatri said the move to reduce parts suppliers is despite introducing new platforms in the PV segment in order to achieve cost efficiencies. (Image Credit: Twitter)

Tata Motors is looking to trim the number of component suppliers for its passenger vehicles (PVs) to around 400 as part of its turnaround strategy, according to a senior company official.

The company, which had embarked on turning around its struggling domestic business in June last year, has around 600 parts suppliers for the PV segment.

While announcing its turnaround strategy, the company had identified streamlining supply chain for both passenger and commercial vehicles segments as one of the key components of the plan.

Tata Motors also plans to increase production at its Sanand plant, which rolls out hatchback Tiago and compact sedan Tiger, to around 12,500 units per month from October.

"We've been working on rationalizing vendors as part of our turnaround strategy. The process is ongoing at the moment," Tata Motors Vice-President PV operations Rajesh G Khatri said here.

Currently, a central team of the company is looking at vendor assessment, he added.

When asked about the total number of vendors and how many would be dropped, Khatri said, "It is difficult to put a number on how many vendors do we have for passenger vehicles, as many are common with commercial vehicles.

"However, a ballpark figure would be around 600 that we had and we are looking to rationalizing it to around 400."

"At 400, we would be considered lean," he added.

Khatri said the move to reduce parts suppliers is despite introducing new platforms in the PV segment in order to achieve cost efficiencies.

When asked what criteria are being applied in assessing vendors for continued relationships with the company, he said among the primary parameters is the ability of the vendor to adopt Tata Motors' process and meet quality besides their financial viability.

He said many of the vendors which had set up shop at the Sanand plant for supplying parts specifically to Nano have upgraded for providing parts for new models such as the Tiago and Tigor.

"Except for one or two vendors all are now supplying for these new models," he said.

He said the Sanand facility is almost running to its peak capacity of 1.5 lakh units a year.

"With de-bottlenecking, we can increase the production. Last year we were 6500 units a month last year but today we are doing 11,000 per month. Our plan is to ramp up to 12,500 a month by October this year."

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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