Tata Motors Resumes Production In Sanand

Tata Nano
Tata Motors, the Indian automotive giant has announced the resumption of car production at its plant in Sanand, Gujarat. The carmaker had halted production to conduct a scheduled maintenance work at the plant that builds the Tata Nano small car. the maintenance was conducted over a period of fifteen days.

Tata Motors in its statement said: "Production at Sanand plant has resumed after a temporary suspension for about a fortnight. The shutdown was meant for maintenance and rationalising of inventory.

This break in production at Sanand would have allowed Tata Motors to improve its inventory of the Nano. Sales of the small car has declined sharply in the past two months. With stocks of the Nano increasing after sales fell, Tata Motors could have organised this maintenance just to prevent an increase in stocks.

Tata Motors is trying every possible means to boost sales of the Nano. It has recently reduced the initial down payment from Rs.35,000 to Rs.15,000. In its statement the carmaker also said its consumer oriented programs in August had resulted in increased enquiries and footfalls in showrooms.

Passenger car sales of Tata Motors has declined rather sharply in the past two months. The Nano, Indica, Indigo have all seen sales decline. While on the other hand sales of SUVs such as Aria, Safari and Sumo have increased. The point to be noted is the fact that the sales volume of these SUVs are much lower than the above mentioned hatchbacks and small cars. Other leading carmakers such as Maruti Suzuki and Honda have also seen their sales fall in the past two months.

It may be recalled Tata Motors started building the nano at Sanand in Gujarat after a prolonged struggle to set up a car plant in Singur West Bengal. Sanand is slowly attracting more and more carmakers. Ford has already expressed interest to build a car plant in Sanand right next to the Tata Nano plant and India's leading carmaker Maruti Suzuki has also said it wants to build a car plant in Gujarat and Sanand in one of the likely locations for the plant.

Article Published On: Monday, August 29, 2011, 11:51 [IST]
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