Jamshedpur: Tata Cummins, the 50:50 joint venture between US-based Cummins Inc and Tata Motors, is witnessing a sustained demand for its engines, which is reflected in HCV & MCV sales volume of Tata Motors, to whom the company supplies its engines. The company is studying its current boom situation and may take a decision next year to expand its facility here.
Tata Cummins, which usually supplies around 2,000 engines every month to Tata Motors, has seen a steady growth in demand for its engines since April, this year. It produced 3,000 units each in April and May, this year, while it supplied 4,200 engines in June, 4,500 in July, 5,200 in August and 5,400 units in September, respectively, to Tata Motors. The supply witnessed a fall in the month of October owing to Puja holidays. It, however, produced 4,500 units in that month.
Tata Cummins vice-president (operations) and plant manager VK Jayaswal told FE that though the company had a capacity to produce only 5,000 engines a month, it was stretching its production capability to produce around 5,500 engines during November. “Of this, while 5,000 would go to Tata Motors, the rest 400-500 engines would be power gensets,” said Mr Jayaswal.
Tata Cummins is, currently, studying the sustainability pattern of the demand before going for an expansion of its plant here.
Mr Jayaswal said that “a market study is going on and a decision on expansion may be taken in April 2004."