Tata Motors is being forced to think out of the box because the chip shortage isn't going away

The Russia-Ukraine war, semiconductor shortages and COVID-19 hurdles have meant that there are supply chain challenges across industries. Speaking to CNBC-TV18, Rajesh Khatri, Vice President-PV Operations, Tata Motors, said that the auto major is implementing various measures to reimagine global supply chain dynamics to tackle this.

“Global semiconductor shortage issue continues to haunt the automotive industry in particular. As we plan for the future, it is time to reimagine our supply chain strategies to be future-ready,” he said.

Tata Motors believes that there need for a more agile, productive, resilient, digital and sustainable supply chain.

“Those adopting a digitally integrated value chain along with a collaborative approach would certainly be more successful,” said Khatri.

Tata Motors says that it has mapped all its suppliers and locations to form a Supplier Grid, which is monitored to assess the risk better and take proactive measures.

The auto giant is also diversifying its supplier risks by implementing measures like designing alternate architecture with new-gen chips to have better availability.

When asked if large investments are needed for all these measures, Khatri replied, “These do not call for any investments. This is a paradigm shift. Instead of focusing on a single supplier, we are diversifying the risks. Minor investments would be necessitated by this but there is no large investment required, this needs a change of approach.”