Ratan Tata May Not Reverse Mistry’s Decision To Hold Back Nano Investment

Ratan Tata is unlikely to reverse the decision on to hold back investments on the Nano project. This decision was earlier taken by the ousted Chairman of Tata Sons, Cyrus Mistry.

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Tata Motors interim Chairman Ratan Tata is unlikely to reverse the decision of Cyrus Mistry to hold back investments for the next-gen Nano.

In August under Mistry's chairmanship, Tata Motors decided to slow down the investment on a new Nano and focus on a two-seater sports car, apart from funding the yet to be launched Hexa, Nexon and Kite 5.

With the change in leadership of the Tata Motors, it was speculated that the company will review all the decisions taken by Mistry who was ousted as the Chairman of Tata Sons.

But according to the sources, Tata Motors is unlikely to reverse the decision on the Nano project and the two-seater sports car project will go on as per the decision.

A Tata Motors spokesperson said, "We are proceeding according to plan and its business as usual. You are already aware that we have a welldefined new PV (passenger vehilces) strategy, which has been approved by the Board of Tata Motors and Mr Ratan Tata has been kept informed of the same."

In recent month's Mistry and his team have been working to improve the company's profit margin and the work was paying off in the Indian market.

The next-gen Nano was named as the Pelican, powering the mini car was a 1-litre, three-cylinder engine and was on course to be launched in 2016-2017.

In a letter to Tata Sons, Mistry had mentioned that the Nano project was losing money but it was still kept on due to emotional reasons.

The entry-level car segment has seen a drastic change in the Indian automobile industry, with the first time car buyers are opting for premium hatchbacks. So the Nano project may not be a profitable venture for Tata Motors.

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Read more on: #tata motors #auto news
Story first published: Friday, November 4, 2016, 12:27 [IST]
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