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Tata To Build Other Cars Apart From Nano in Sanand
Tata Motors had built the car plant in Sanand to exclusively build the Tata Nano small car. The plant has an annual production capacity of more than 2.5 lakh units and current sales figures of the Nano does not require the plant to run at full capacity. Adding other model's to the plant's production will make the plant financially viable and will also help Tata Motors' suppliers to remain profitable.
Industry experts believe Tata Motors could shift production of some its hatchbacks to Sanand. The carmaker has two other car plants in Pantnagar and Dharwad. According to experts Tata has to sell a minimum of 10,000 Nanos if the operation has to be financially viable. With monthly sales getting closer to 1,000 units, the Sanand plant will definitely become a costly white elephant.
Tata Motors had previously planned to increase production at its plant to 20,000 units a month. With sales not picking up to expected levels it makes business sense to add other model to the production line and increase the Sanand plant's productivity.
The Tata Nano has found the going tough in the sales race. Its image of being a cheap car has not helped it much. Tata Motors began exporting the Nano to international markets such as Sri Lanka and. Nepal. However, sales from exports are not in huge numbers.
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