Tata Increases Nano Production 20 Percent

By Brendan Moore

10.14.2009

2009 Tata Nano

Tata will increase their Nano production from 2500 units a month to over 3000 units a month.

“In the last three months, we have been averaging about 2,500 Nanos per month,” Rajiv Dube, head of the company’s passenger car business, stated to reporters in Mumbai this morning.

“We are gearing up for a higher number and we are ramping up our production capacity by 20 percent from this month.”

Tata, India’s largest auto manufacturer, manufactures the Nano, the world’s cheapest car, in Pantnagar, India. The Nano’s original production site in Singur in West Bengal, was abandoned after fierce protests from local farmers in the area. The new production site, Sanand in Gujarat, is on schedule to come on line in the next fiscal year. The Pantnagar site was pressed into service as a Nano production facility on an interim basis when it became clear the move from Singur to Sanand would disrupt the planned production schedule.

In other news from Tata today, the company also announced the launch of its new Indigo Manza in India, a car in the same size and price range as the Suzuki SX4, the Ford Fiesta, GM’s Aveo and the Honda City (Fit).

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Author: Brendan Moore

Brendan Moore is a Principal Consultant with Cedar Point Consulting , a management consulting practice based in the Washington, DC area. He also manages Autosavant Consulting, a separate practice within Cedar Point Consulting. where he advises businesses connected to the auto industry. Cedar Point Consulting can be found at http://www.cedarpointconsulting.com.

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5 Comments

  1. There is speculation that Tata is taking a small loss on each Nano at the current rate of production.

    If that’s true, it makes you wonder at what volumes they can make money on the car.

  2. Still no word on when this car will be sold in America, I guess.

  3. It may be excruciatingly cheap, but by golly it’s cute. We’re starting to see a number of SmartCars around here (Nashville), in addition to MINI-sized models. Maybe ‘cute’ would sell the Nano in the states if they could get it certified for safety. But then I’m prejudiced. I drive a New Beetle and learned to drive on a ’52 Crosley (a tiny car when huge behemoths roamed the highways of America).

  4. But the question always come back to, “what will it cost after the safety modifications to make it legal in the U.S.”?

    And it is very basic. How much more will more equipment cost? And then will the engine have to be replaced because now the car is much heavier?

    After all this, a sturdy seconddhand car might be looking better.

  5. Tata surely needs to increase Nano’s production as the demand for this Car will increase due to its pricing budget

    Two wheeler buyers would have another option to own Four wheeler at reasonable rate

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