In a regulatory filing with stock exchanges, Tata Motors has reported a temporary disruption in operations at its manufacturing plants in Sanand, Gujarat, after heavy monsoon rains and flooding affected the region. Specifically, some areas in Gujarat received between 300mm and 500mm of rain within 24 hours, which led to flooding, widespread road and rail disruptions and the evacuation of over 40,000 people across the state.
Production of Tata Nexon, Sierra, Tiago and Tigor briefly paused
In the regulatory filing, Tata Motors revealed that severe flooding disrupted supplier facilities in and around Gujarat as well, further impacting the carmaker’s supply chain. Efforts to restore operations at Tata’s assembly plants and vendor facilities are underway, and the carmaker is working closely with flood-affected suppliers to help them resume production as quickly as possible. If all goes to plan, production at Tata’s Sanand plants is expected to bounce back over the next few days.
Established in 2010 and located 25-30 km from Ahmedabad, the Sanand manufacturing complex houses two Tata Motors passenger vehicle plants. Both Sanand facilities manufacture the Tata Sierra, Nexon, Tiago and Tigor, so the production pause could prolong waiting periods for these models.
Tata Motors also stated the overall financial impact and extent of damage are still being assessed. However, the carmaker assured that it has adequate insurance coverage for losses arising from natural calamities such as floods.
Dipan Sur
Glenn Noronha
Dhruv Dhaka
