Tata Motors Cuts Nano Production By Half

Tata Nano
Tata Motors might appear to be on a high after launching the new 2012 Tata Nano but the sales scenario does not seem to be very great. The Indian carmaker has in fact producing just 50 per cent of the total plant cappacity so far.

The Tata Nano's plant in Sanand Gujarat had a production capacity of 2.5 lakh units per year and Tata Motors has so far built just about 10,000 units per month. This translates to about 1.2 lakh units per year. This discrepancy in production capacity and actual production of the Nano is due to the lukewarm sales in recent months. This information was provided by R Ramakrishnan, VP (commercial), passenger car business head of Tata Motors who was in Kolkota for the launch of the new Tata Sumo Gold

The 2012 Nano can promise to improve sales as it has some improved features and will be available in ten colours. Further Tata Motors has made the 2012 Nano more fuel efficient. Tata Motors wants to boost the Nano's sales further by having dedicated showrooms for the Nano across the country. The Nano has been Tata Motor's most ambitious projects.

Tata Motors has a plant exclusively for the Nano in Sanand, Gujarat. But with not more than half of the production capacity being utilized, the carmaker has decided to also build other models in the plant. The most likely models will be the Indica hatchback.

Tata Motors also wants to improve its market share in the SUV segment. It currently holds a market share of 14 per cent this year which is lower than its previous mark. The recently launched Tata Sumo Gold is expected to offer the much needed boost.

Article Published On: Thursday, November 24, 2011, 12:28 [IST]
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