Panic amongst tata motor suppliers

AS pointed out earlier here these suppliers have more to lose than tata,now all are in panic mode

Quote:

Tata Motors’ recent move to cut orders from suppliers of its existing commercial vehicle and passenger car segment by about 20-30% has created panic among component suppliers on the company’s much-awaited Rs 1-lakh car. According to auto industry sources, vendors and suppliers for the small car project have asked for a minimum fixed quota of supplies or price increase in case of a reduced offtake. The suppliers have reportedly sought a minimum volume of supplies. “The reduction in supply orders for the current products has hit the component industry. Any such changes in supplies for the high-volume Rs 1-lakh car could severely impact our profits. Vendors are investing heavily in the tooling and other manufacturing processes, targeting huge orders. Some guaranteed component supply or price assurance have been taken to meet any eventuality,” said one component supplier for Tata Motors. “It is a very competitive segment and any change in the supply equation would impact costs and jeopardise our operations. It’s a volume game for us to survive and we don’t want negative margins,” said another component supplier.

Source:
http://economictimes.indiatimes.com/...ow/2219120.cms