Tata Motors Slowed Down Nano Production
It was inevitable, we think! The recent record low sales of Tata Nano has forced Tata Motors to slow down production of the same car. As many as 7000 cars are parked in the company’s Sanand factory in Gujarat which was launched with much fun-fare as world’s cheapest car. Only 509 Nanos were sold in the month of November 2010, as reported by the Society of Indian Automobile Manufacturers (SIAM).“The slow pace at which cars are being picked up from the factory, it will take more than six months to clear the stock lying in the ground,” a source said from the factory. It is estimated to take over six months to clear the stocks.
The small wonder Tata Nano was priced at Rs 1 lakh comes within a price range of Rs 1.37 lakh to Rs 1.88 lakh (ex-showroom, New-Delhi). Vendors who supply parts to Tata Motors said orders have been reduced and it was unlikely sales would match the projections of 20,000-25,000 units every month by March 2011 that the firm had prepared when it inaugurated the Sanand factory in June this year. The corporation has allotted the plots to 41 vendors which is near to the manufacturing unit extend around 375 acres in which 25 have already commence the construction and six will start soon.