Tata Motors to reduce component suppliers for PVs

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 Tigor, to around 12,500 units per month from October.

"We've been working on rationalising 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 rationalising it to around 400."