Tata Nano Production At 50% Of Capacity

Tata Motors recently launched the first upgrade to the Nano. The world’s cheapest car is being manufactured at the company’s Sanand facility, which has an installed capacity of 2.5 lakh units. However the company is only manufacturing close to 1.2 lakhs units every year. Sales of the Nano have not crossed 10000 units mark any month, due to which the company is still not producing as many Nanos as they must have hoped for. Furthermore, the launch of the Nano in overseas market has not seen enough volume for Tata Motors to increase production yet. Tata Motors is betting big on the Nano as the company sees huge potential from the car, whose sales have been increasing every month, inspite of adverse conditions in the Indian car market. The Nano is being targeted aggressively in rural areas and exclusive Nano outlets are being set-up there to target 2-wheeler users.

“Our installed capacity for Nano is 2.5 lakh units per annum and we are presently producing 10,000 cars per month,” R Ramakrishnan, VP (commercial), head – passenger car business, Tata Motors, said.