Tata Motor denies payment problems with vendors

Tata Motors denied payment problems after the recent non payment accusations in media. According to Tata Motors said that the payment of purchases from vendors have been paid immediately through an arrangement with banks.

Under an agreement between the company, banks and vendors, known as the Bill Marketing Scheme, the bank pays the vendor for purchases by Tata Motors and the company pays the banks after some time, said the company’s managing director Ravi Kant.

Some foreign venders reportedly complained about non payments. Some Indian suppliers also quoted complaining about due payments.
“We have seen improvement in sales in January. It is expected that February will be better than January and first indications are that March will be even better. As sales begin to increase, vendor purchases will also improve and a positive cycle will once again get created. Our credit period for vendors is between 30 and 60 days,” said Mr. Kant, Tata Motors MD.

Vishu Mathur, executive director of ACMA who earlier reported as complaining about non payments said that ACMA has not complained and not given any figure about non payments to its members.