Initially, when Tata started Nano plant in Sanand, Gujarat, they expected it to produce around 2,50,000 Tata Nano hatchbacks annually. Also considering the chances of expansion, they provided enough capacity to push the output up to one lakh and summing the total figure to 350000 units. But now the realities have begun to hit the rock bottom.
Tata was not the only one to set up a facility there, with them came along a large number of car parts suppliers and other vendors who expected to make some money under the shade of Nano plant. Along with a large capital investment, lot number of people were deployed in manufacturing of Nano and its parts. The investment of this level was unavoidable considering the thrill over the cheapest car in the world.
When Nano was first showcased in Auto Expo 2008 the demand for the vehicle dramatically shooted sky and there was a big gap between the number of units being delivered and number of units being asked for. Contrast to that now the facility utilizes just 25% of the original capacity of 250000 units.
This ultimately resulted into the trimming of operations being carried out in and around the plant and several unwanted job cuttings. The car has failed to lure enough buyers despite so desperate efforts by the brand to promote it through makeovers and various offers. Although the sales figures haven’t touch the rock bottom yet as Tata Motors was able to sell more than 3500 units in November 2012. But the car does looks like a flop show when compared from what it aimed for initially and where it stands currently.
According to stats, Tata Motors need to manufacture at least 1.5 lakh units to cover 60% of plant’s space for making the project Nano feasible for its makers. Not ready to give up, Tata Motors is now planning to incorporate a CNG system into it which will be more economical for its users. This CNG version of Tata Nano will be equally efficient as Nano diesel version which is also expected to hit the floors soon. Through all these efforts Tata Motors just expect the model to prove its worth to market and to the makers themselves. Tata is also working on refreshing or facelift of the Nano in 2013. Stay tuned to us for the latest updates.
source- Business Standard