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Tata Motors to significantly reduce its supplier base

Tata Motors will phase out some suppliers along with the legacy models.

With Guenter Butschek on board, Tata Motors is moving forward with a new mission, vision, and values. This also warrants a whole new approach.

Talking to Economic Times, the firm’s MD and CEO stated that the company is conducting a study to decide on phasing out legacy products that are not selling well. He also highlighted the importance of improving commonality and economies of scale by reducing the number of platforms in both passenger and commercial vehicle segments.

Tata Kite 5 at 2016 GEneva Motor SHow

Tata Motors will focus on improving economies of scale in the future.

The head honcho wants to focus on less number platforms and leverage these platforms to establish presence in high growth segments. He is confident that the upcoming products such as the Kite 5, Nexon, Hexa, etc., will help the company in its transformational phase.

Another important point of focus for Tata Motors is to reduce the number of vendors significantly. As of now the firm has as many as 1,300 tier-1 suppliers. Mr. Butschek said that some of the suppliers will be¬†dropped along with the legacy products and probably won’t show up on the new supplier base.

Tata Hexa Tuff 2016 Geneva Motor Show LIVE photos (25)

Legacy products in both passenger and CV segments will be phased out to make way for new products.

Tata Motors is gearing up to be among the top three passenger car makers in the domestic market and top three commercial vehicle makers in the global market by 2018-19.

Via –

About the author

Nithyanandh Karuppaswamy

Winner of national level automotive quiz competitions, Nithyanandh aka Nithz jumped into the blogosphere right after gaining a degree in Mechanical Engineering. Love for automobiles and an even greater drive to share his knowledge with the automotive community, Nithz is Deputy Editor at RushLane.

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