Tata Motors planning to source auto components from Chinese market

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July 10, 2012, 12:37 IST by

Tata Motors, South Asia’s largest automotive company, is approaching China to source the components that are unavailable in the Indian auto market. The Chairman of Tata Motors, Ratan Tata said that the company took this move as the auto maker is planning to manufacture vehicles with automatic transmission in the domestic market.

 

Tata Motors planning to source auto components from Chinese market
Tata Motors planning to source auto components from Chinese market
 

Tata has a wide range of trucks, sedans and Utility Vehicles (UV) in its product portfolio and is likely to benefit from the ‘unbelievable’ prices offered by the Chinese component makers. The Chairman of the company further said that the auto maker will also buy ‘sub-assemblies’ along with the automatic transmission kits.

Tata Motors is looking ahead to compete with the big players of the Indian auto industry, including Toyota Motor and Ford Motor. The manufacturer of the iconic Tata Nano has a cause for concern as the company registered the lowest profits in its tenure of three years that ended in the fiscal of 2012.

Deepesh Rathore, Managing Director, IHS Automotive, India quoted, “Sourcing from China would be the only way forward for Tata given that an Indian supplier may not be willing to build something like an automatic transmission unless the volumes were high enough.”

The domestic unit of Tata is not offering any vehicle with automatic transmission at present, whereas Maruti Suzuki on the other hand has five variants with the same technology in its portfolio. The country's second largest auto maker, Hyundai Motor offers the same on most of its eight brands.

Ratan Tata, who will step down from the position of the Head of the company in December, said that he has not been able to make the multinational a “truly open, flat, transparent organisation”. On being asked about what he was unable to do that he had wanted to during his position as the Head of the company, Mr. Tata further added, “Perhaps internally, I have not been able to create the truly open, flat, transparent organisation that I had hoped we could do.” He said that his group, which was mainly “a traditionally manufacturing company in a sellers market", was not successful in “really embracing the customers' values”, however, he hoped that he would be able to pass on the legacy to carry on the trend of progress without compromising with values and ethics.Tata Motors, South Asia’s largest automotive company, is approaching China to source the components that are unavailable in the Indian auto market. The Chairman of Tata Motors, Ratan Tata said that the company took this move as the auto maker is planning to manufacture vehicles with automatic transmission in the domestic market.

Tata has a wide range of trucks, sedans and Utility Vehicles (UV) in its product portfolio and is likely to benefit from the ‘unbelievable’ prices offered by the Chinese component makers. The Chairman of the company further said that the auto maker will also buy ‘sub-assemblies’ along with the automatic transmission kits.

Tata Motors is looking ahead to compete with the big players of the Indian auto industry, including Toyota Motor and Ford Motor. The manufacturer of the iconic Tata Nano has a cause for concern as the company registered the lowest profits in its tenure of three years that ended in the fiscal of 2012.

Deepesh Rathore, Managing Director, IHS Automotive, India quoted, “Sourcing from China would be the only way forward for Tata given that an Indian supplier may not be willing to build something like an automatic transmission unless the volumes were high enough.”

The domestic unit of Tata is not offering any vehicle with automatic transmission at present, whereas Maruti Suzuki on the other hand has five variants with the same technology in its portfolio. The country's second largest auto maker, Hyundai Motor offers the same on most of its eight brands.

Ratan Tata, who will step down from the position of the Head of the company in December, said that he has not been able to make the multinational a “truly open, flat, transparent organisation”. On being asked about what he was unable to do that he had wanted to during his position as the Head of the company, Mr. Tata further added, “Perhaps internally, I have not been able to create the truly open, flat, transparent organisation that I had hoped we could do.” He said that his group, which was mainly “a traditionally manufacturing company in a sellers market", was not successful in “really embracing the customers' values”, however, he hoped that he would be able to pass on the legacy to carry on the trend of progress without compromising with values and ethics.Tata Motors, South Asia’s largest automotive company, is approaching China to source the components that are unavailable in the Indian auto market. The Chairman of Tata Motors, Ratan Tata said that the company took this move as the auto maker is planning to manufacture vehicles with automatic transmission in the domestic market.

Tata has a wide range of trucks, sedans and Utility Vehicles (UV) in its product portfolio and is likely to benefit from the ‘unbelievable’ prices offered by the Chinese component makers. The Chairman of the company further said that the auto maker will also buy ‘sub-assemblies’ along with the automatic transmission kits.

Tata Motors is looking ahead to compete with the big players of the Indian auto industry, including Toyota Motor and Ford Motor. The manufacturer of the iconic Tata Nano has a cause for concern as the company registered the lowest profits in its tenure of three years that ended in the fiscal of 2012.

Deepesh Rathore, Managing Director, IHS Automotive, India quoted, “Sourcing from China would be the only way forward for Tata given that an Indian supplier may not be willing to build something like an automatic transmission unless the volumes were high enough.”

The domestic unit of Tata is not offering any vehicle with automatic transmission at present, whereas Maruti Suzuki on the other hand has five variants with the same technology in its portfolio. The country's second largest auto maker, Hyundai Motor offers the same on most of its eight brands.

Ratan Tata, who will step down from the position of the Head of the company in December, said that he has not been able to make the multinational a “truly open, flat, transparent organisation”. On being asked about what he was unable to do that he had wanted to during his position as the Head of the company, Mr. Tata further added, “Perhaps internally, I have not been able to create the truly open, flat, transparent organisation that I had hoped we could do.” He said that his group, which was mainly “a traditionally manufacturing company in a sellers market", was not successful in “really embracing the customers' values”, however, he hoped that he would be able to pass on the legacy to carry on the trend of progress without compromising with values and ethics.Tata Motors, South Asia’s largest automotive company, is approaching China to source the components that are unavailable in the Indian auto market. The Chairman of Tata Motors, Ratan Tata said that the company took this move as the auto maker is planning to manufacture vehicles with automatic transmission in the domestic market.

Tata has a wide range of trucks, sedans and Utility Vehicles (UV) in its product portfolio and is likely to benefit from the ‘unbelievable’ prices offered by the Chinese component makers. The Chairman of the company further said that the auto maker will also buy ‘sub-assemblies’ along with the automatic transmission kits.

Tata Motors is looking ahead to compete with the big players of the Indian auto industry, including Toyota Motor and Ford Motor. The manufacturer of the iconic Tata Nano has a cause for concern as the company registered the lowest profits in its tenure of three years that ended in the fiscal of 2012.

Deepesh Rathore, Managing Director, IHS Automotive, India quoted, “Sourcing from China would be the only way forward for Tata given that an Indian supplier may not be willing to build something like an automatic transmission unless the volumes were high enough.”

The domestic unit of Tata is not offering any vehicle with automatic transmission at present, whereas Maruti Suzuki on the other hand has five variants with the same technology in its portfolio. The country's second largest auto maker, Hyundai Motor offers the same on most of its eight brands.

Ratan Tata, who will step down from the position of the Head of the company in December, said that he has not been able to make the multinational a “truly open, flat, transparent organisation”. On being asked about what he was unable to do that he had wanted to during his position as the Head of the company, Mr. Tata further added, “Perhaps internally, I have not been able to create the truly open, flat, transparent organisation that I had hoped we could do.” He said that his group, which was mainly “a traditionally manufacturing company in a sellers market", was not successful in “really embracing the customers' values”, however, he hoped that he would be able to pass on the legacy to carry on the trend of progress without compromising with values and ethics.Tata Motors, South Asia’s largest automotive company, is approaching China to source the components that are unavailable in the Indian auto market. The Chairman of Tata Motors, Ratan Tata said that the company took this move as the auto maker is planning to manufacture vehicles with automatic transmission in the domestic market.

Tata has a wide range of trucks, sedans and Utility Vehicles (UV) in its product portfolio and is likely to benefit from the ‘unbelievable’ prices offered by the Chinese component makers. The Chairman of the company further said that the auto maker will also buy ‘sub-assemblies’ along with the automatic transmission kits.

Tata Motors is looking ahead to compete with the big players of the Indian auto industry, including Toyota Motor and Ford Motor. The manufacturer of the iconic Tata Nano has a cause for concern as the company registered the lowest profits in its tenure of three years that ended in the fiscal of 2012.

Deepesh Rathore, Managing Director, IHS Automotive, India quoted, “Sourcing from China would be the only way forward for Tata given that an Indian supplier may not be willing to build something like an automatic transmission unless the volumes were high enough.”

The domestic unit of Tata is not offering any vehicle with automatic transmission at present, whereas Maruti Suzuki on the other hand has five variants with the same technology in its portfolio. The country's second largest auto maker, Hyundai Motor offers the same on most of its eight brands.

Ratan Tata, who will step down from the position of the Head of the company in December, said that he has not been able to make the multinational a “truly open, flat, transparent organisation”. On being asked about what he was unable to do that he had wanted to during his position as the Head of the company, Mr. Tata further added, “Perhaps internally, I have not been able to create the truly open, flat, transparent organisation that I had hoped we could do.” He said that his group, which was mainly “a traditionally manufacturing company in a sellers market", was not successful in “really embracing the customers' values”, however, he hoped that he would be able to pass on the legacy to carry on the trend of progress without compromising with values and ethics.

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Comments on this article

  • Automatic transmissions consume more fuel, and TATA needs them only when they want to sell cars abroad. What TATA needs to look at is customer feedback. Almost all thier products lag behind even compared to domestic rivals. It is an embarrasement for the TATA to field vehicles like Aria and Safari Strom against products like XUV 500. Sumo Grande against Mahindra Xylo. The diffrence is TATA doesn`t design its product with passion except for the Nano.

    July 11, 2012 by  Mithun
  • I WANT THE MAT WHICH TATA NANO PROVIDE THE BACK SIDE SEATON THE ENGINE COVER & MY CAR SILENCER ARE GETTING RUSTED NOW I PURCHASE THE CAR FROM LEXUS MOTORS KOLKATA ON 14TH January 2012. PLEASE GIVE ME THE ADVICE FOR SOLVE THIS PROBLEM ASAP.

    July 10, 2012 by  SAIKAT CHAKRABORTY
  • Good move by TATAS to make available auto transmission cars not continuously depending on China would not strategic move, should make own arrangement so that servicing is not a problem as also try to make four three/four cylinders nano with hybrid/hydrogen technology.

    July 10, 2012 by  Surinder Singh
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