ERJ staff report (DS)
Mumbai - Tata Motors said it has been forced to restrict output of commercial vehicles due to a shortage of radial tyres suitable for trucks and buses.
In a presentation for its third quarter resutls, the company said it has reduced production of commercvial vehicles by up to 10 per cent since January due to shortages. Earlier Tata's local competitor, Ashok Leyland, reported a 20 per cent cut in output due to tyre shortages.
ATMA, the Indian Tyre manufacturers; Association has said that the supposed shortage is more about price than availability. As raw material inputs have risen, the tyre makers have sought price increases, but some vehicle makers have been reluctant to pay.
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Press release from Tata
Conference call transcript from Tata
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