Auto Component Manufacturers Find it Tough to Meet Market Demand

Saturday 05 June 2010, 00:00 AM by Payal Pathak

Tata Motors’ mother plant for Nano has begun commercial production of its small car and that has left auto component manufacturers gasping for breath as the demand picks up. Tata Motors is planning to raise the production up to 1200 cars per day by December. Currently, Sanand plant and Pantnagar plant are running on eight hours schedule producing 150 cars per day which makes 4500 cars per month.

Auto component suppliers are in frenzy to meet the rise in demand now and are expected to face tough times meeting the rise in demand that shows all signs of swelling up by the end of this year. Industry watchers are wary of their capacities as currently some of the suppliers had to import auto components from SE Asian countries to meet the demand.

Shriram Pistons managing director Ashok Taneja stated that small manufactures are finding it tough to keep pace and bigger manufacturers are asking for higher price.

“The domestic supply of components is improving as we are all investing heavily in capacity expansion. Large players such as Maruti-Suzuki, Tata Motors and Hyundai have targeted growth upwards of 10% this year,” said another Delhi-based component player.

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