Tata to appoint big vendors for small car proj

Kolkata, Aug 22: Tata Motors Ltd is looking at big vendors for outsourcing automotive components for its proposed small car project.

Company's Deputy Chief of strategic sourcing department B B Parekh told reporters that the company is looking for big sized suppliers of auto components so that, in case of need, the vendors can ramp up capacity and invest in technology.

Tata Motors would be able to accomodate less than 100 vendors in the vendor park in 300 acres of area at the proposed plant in Singur in the Hooghly district of West Bengal, he said.

Mr Parekh said the production of the proposed small car is expected in the region of more than two lakh per annum and a major portion of the automotive components would be outsourced.

He said as part of policy, the company is reducing its vendor base to accomodate only big players, who can invest in technology and ramp up capacity, as and when required.

The company has already reduced its vendor base to 700 vendors from 1400 earlier to move away from multiple vendor base system, which was not viable.

He said the company is outsourcing a major chunk of automotive components and the outsourcing is expected to go up to 80 per cent in near future.

He said India can become the auto component hub with major automotive companies like Toyota, General Motors, Dailmler Chrysler, Hyundai and Ford outsourcing from the country.

UNI