Tata Motors has finally announced to share the major portion of the cost of its Nano vendors. After the increase of the raw material prices, there has been a continuous pressure from the vendors and now the company has agreed to meet the cost difference.
There has been about 50-60% increase in steel prices since last year and this has hooked the vendors, particularly forging companies and most are renegotiating contracts with auto Original Equipment Manufacturers (OEM).
The CEO of a Delhi-based auto component company which is supplying crucial parts to the Tata said, “The vendors had been pushing for some relief for quite a while and Tata Motors has finally relented on the steel front.”
The relief is only limited to material cost of the Nano components, though the vendors are also demanding for other benefits. The company is decided to provide the concession seeing the sudden increase in the prices of steel, aluminum and other alloys.