Tata Motors to shut down CV plant in Pune for 3 days

Tata Motors will shut down its commercial vehicle (CV) plant in Pune for three-days reports CNBC-TV18’s Sonia Shenoy.

The Indian Oil Corporation depot fire has had an impact on various production units. The latest one to be affected is Tata Motors. Tata Motors has shut down its CV plant in Pimpri near Pune for a span of three-days. The three-day close is because one of its suppliers of fuel pumps – Bosch Limited – has been affected by the IOC fire. The Bosch plant is just four kilometers away from the IOC site.

We spoke to Tata Motors management on the kind of impact that this would have as Tata Motors is concerned. There is no material impact that this CV space will see because of this although Bosch is the only one that supplies fuel pumps to the entire CV space, be it Tata Motors or Ashok Leyland. There has been huge inventory that has been piled up at the dealer level – at Bosch level as well – that has been exhausted as of now. Going forward, there will be a minor slippage that will be seen but it will not affect Tata Motors annual CV target.

We spoke to a whole host of vendors as well. There is a shortage of fuel pumps because of which Tata Motors has stopped their production to avoid a glut in the system because without the fuel pumps that they can’t go ahead with their production. That is the only reason why they have stopped production for a span of three days. We spoke to analyst as well they have said that there is no big slippage that Tata Motors will see because of this. But there has been an impact as far as the targets for Ashok Leyland are concerned because this kind of dealer level inventory is assured for Tata Motors but for Ashok Leyland we still don’t have the figures as far as fuel pumps are concerned.

There are electrical and lightening companies as well that have got damaged in the surrounding areas due to which a whole host of these components will be affected.