India’s automotive giant Tata Motors has encountered problems in paying suppliers and vendors more than Rs 1,200 crore in unpaid dues. These dues have been accumulated over the past few months, reports Economic Times. The company’s stock reacted negatively on the news, and
fell by 5.4% to reach it day’s low at Rs 128. The company posted first quarterly loss in seven years of Rs 263 crore for Q3 ending December 2008.
Tata Motors is suffering due falling sales in auto sector and payment for acquisition of Jaguar and Land Rover. Also the company has been decreasing orders to these equipment suppliers as the demand slows down.