Tata Motors expects temporary hit on demand; to calibrate supplies
“We will also continue to review and plan for the critical raw materials to cater to this volatile demand outlook and work closely with our vendor partners to meet the same”, the Mumbai-based auto maker said in a statement.
April 26, 2021 / 06:29 PM IST
Tata Motors, India’s third largest automobile manufacturing company, has adopted a ‘business agility plan’ through which it aims to calibrate and match supplies with retail demand.
The Mumbai-based company stated that it shall ensure that optimal levels of inventory are maintained with dealers to meet whatever customer demands arise and also be prepared for a rebound in demand once the situation returns to normalcy.
“We will also continue to review and plan for the critical raw materials to cater to this volatile demand outlook and work closely with our vendor partners to meet the same”, the manufacturer of Safari and Nexon said further.
Like the rest of the automotive industry Tata Motors is also expecting a temporary disruption in vehicle demand even as lockdowns in various parts of the country is bound to have an impact on parts supplies and thus vehicle production.
Three of Tata Motors five plants are located in the top five states worst affected by the COVID-19 pandemic. The company’s car, SUV, truck and bus plants are located in Maharashtra, Gujarat and Karnataka. So far, the company has not announced a shutdown of production activity at any of its plants.
“Keeping employee safety foremost, standard operating procedures have been updated for the prevailing second wave with the focus on expediting vaccinations, providing support to affected employees and their family members. The lockdown enforced in various parts of the country is expected to impact vehicle demand temporarily”, the company added.