Tata Motors is working with suppliers to address capacity constraints in sheet-metal parts, castings and forgings after demand increased simultaneously across vehicle categories.
The pressure emerged as demand grew across two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and tractors.
“We have seen an increase in demand across most of the automotive segments, be it two-wheelers, three-wheelers, passenger cars, commercial vehicles or tractors,” Girish Wagh, managing director and CEO, Tata Motors, said during the company’s Q1 FY27 media call.
The increase strained supplier capacity for sheet-metal parts, castings and forgings. Tata Motors and its suppliers have initiated measures to add capacity and improve throughput in the affected areas.
“We have taken actions in these areas to increase the capacity and therefore improve the throughput,” Wagh said.
The company said throughput had begun improving during Q1 and expected further progress during the second quarter.
Labour migration also affected the supply situation towards the end of Q1, although Tata Motors said its supplier partners had addressed the problem to a significant extent.
Tata Motors did not identify the affected suppliers or quantify the effect of the constraints on component availability.
The constraints emerged during a quarter in which Tata Motors’ commercial vehicle sales increased 27 percent year on year to 108,488 units. The company said demand for heavy commercial vehicles remained broad-based, with growth across applications rather than being restricted to mining and infrastructure.
Tata Motors expects the capacity and throughput measures initiated with its suppliers to progressively ease the constraints during Q2 FY27.