Tata Motors will outsource components for its proposed small car project from large vendors, a senior company official told reporters.
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The automaker’s deputy chief of strategic sourcing BB Parekh reportedly said the automaker is looking for large suppliers of auto components so that the vendor can ramp up capacity and invest in technology whenever required.
Tata Motors would be able to accommodate less than 100 vendors in the 300-acre vendor park at the proposed plant in Singur in the Hooghly district of West Bengal, he told the Indo-Asian News Service.
Production of over 200,000 a year of the proposed small cars is anticipated and a major portion of the components would be outsourced, he said.
He noted that, as part of the policy, the company is reducing its vendor base to accommodate only big players, who can invest in technology and ramp up capacity as and when required.
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By GlobalDataThe company has already reduced its vendor base to 700 vendors from 1,400 earlier to move away from a multiple vendor base system, which was not viable.
The company is outsourcing a major chunk of components and the outsourcing is expected to go up to 80% in the near future, he said.
India could become an auto component hub with major car makers outsourcing from the country, the official told Indo-Asian News Service.
