Tata Nano Was Supposed To Run On Alternative Fuel — But Ratan Tata Couldn’t Implement The Plans

The Tata Nano project was not runnig according to the plan, but Ratan Tata had other ideas to turn around the fortunes of the Nano in the global market.

By Sukesh

After the earlier comments made by Tata Son's ousted Chairman Cyrus Mistry, the Nano project has been a hot debate in the Indian automobile industry.

Tata Nano Was Supposed To Run On Alternative Fuel — But Ratan Tata Couldn’t Implement The Plans

According to the data from the Society of Indian Automobile Manufacturers, although Nano may be the cheapest car in the world, its sales has dropped 70 percent over the course of last six years.

Tata Nano Was Supposed To Run On Alternative Fuel — But Ratan Tata Couldn’t Implement The Plans

In an earlier comment made by Mistry stated that even though there was no margin of profit from the Nano project it was kept on due to emotional reasons.

Tata Nano Was Supposed To Run On Alternative Fuel — But Ratan Tata Couldn’t Implement The Plans

The reason is because the Nano project supplies parts to an electric car company which is part owned by the founder of Nano project Ratan Tata.

Tata Nano Was Supposed To Run On Alternative Fuel — But Ratan Tata Couldn’t Implement The Plans

But as per the sources, the insiders of the Tata Motors say that Ratan Tata had other plans for the Nano to turn the fortunes of the car, but it was not possible to implement the plan after Cyrus Mistry became the Chairman in December 2012.

Tata Nano Was Supposed To Run On Alternative Fuel — But Ratan Tata Couldn’t Implement The Plans

One of the insiders from Tata Motors said, "There was a lot of research and development on the Nano platform. There were plans to use it to develop an air car (which uses compressed air to drive), and hybrid and electric cars."

Tata Nano Was Supposed To Run On Alternative Fuel — But Ratan Tata Couldn’t Implement The Plans

Tata Motors was also working with the Norwegian electric car and component manufacturer Miljøbil Grenland, it also acquired 60 percent of the stake in the company. And for the air car Tata Motors was working with French firm Motor Development International.

Tata Nano Was Supposed To Run On Alternative Fuel — But Ratan Tata Couldn’t Implement The Plans

Both the firms were working on a seven-year project. In 2010 Tata Motors funded Miljøbil Grenland to develop a battery technology.

Tata Nano Was Supposed To Run On Alternative Fuel — But Ratan Tata Couldn’t Implement The Plans

Tata had also speculated for an automatic version of the Nano. Also there were plans to export the Nano to Latin America and Europe and these cars would have been feature rich.

Tata Nano Was Supposed To Run On Alternative Fuel — But Ratan Tata Couldn’t Implement The Plans

But in the end Tata sold all of the Miljøbil Grenland shares to the Canadian lithium cell manufacturer Electrovaya.

Tata Nano Was Supposed To Run On Alternative Fuel — But Ratan Tata Couldn’t Implement The Plans

In 2015 Ratan Tata also invested in Ampere Vehicles, manufacturers of two and three wheeler electric vehicles. But the firm denied to have bought any Nano body shells from Tata Motors.

Tata Nano Was Supposed To Run On Alternative Fuel — But Ratan Tata Couldn’t Implement The Plans

But Indian auto experts say that there is nothing to be ashamed of from the Nano project. A former Tata Motors Executive who had worked in the Tata Nano project said, "The Nano was developed to tackle a phenomenally bold challenge at an unheard-of price. It is not uncommon for pioneers to fail."

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Read more on: #tata motors #auto news
Article Published On: Saturday, October 29, 2016, 16:04 [IST]
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