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

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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.

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

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.

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

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.

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

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.

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

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."

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

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.

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

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.

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

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.

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

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.

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

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