Tata Motors to use excess Sanand Nano factory capacity to manufacture commercial vehicles! UPDATE: [Tata Motors Denies this]

Tata Nano Production Line at Sanand, Gujarat

When Tata Motors Limied set shop at Sanand, Gujarat to build the iconic low cost small car, the Tata Nano, the automaker built a manufacturing facility capable of churning out no less than 2.5 Lakh Nanos every year with the facility even capable of an additional capacity of 1 Lakh Nanos if the need arose. Along with Tata, a number of spare parts vendors associated with the Nano also set shop at Sanand after making sizeable investments. Now though, the Nano has been selling less than 3,000 units per month, which is dramatically lower than Tata’s original estimates of 20-25,000 units per month.

This has resulted in Tata cutting down production at Sanand in August to adjust inventory as well as to conduct maintenance activities at the Sanand plant. With the production of the Nano being cut and with the latest events of fires plaguing the Tata Nano not helping matters, the viability of the Sanand plant is in question. Also, Tata recruited a huge number of young workers when it established the Sanand plant to manufacture the Tata Nano. These workers’ futures too hang in balance with the Tata Nano not doing well.

Tata Nano Production Line at Sanand, Gujarat

So, Tata Motors is said to be mulling various options to ensure that the Sanand plant remains a viable investment. One plan is to manufacture the company’s other hatchbacks at Sanand, thus utilizing the unused capacity created for the Tata Nano. The other option is that of manufacturing Tata’s range of commercial vehicles which includes the best selling Tata Ace Mini Pick Up Truck and the Tata Magic People Mover amongst other vehicles at the Sanand plant. Currently, Tata operates two plants for its commercial vehicles like the Tata Ace and the range of Tata buses.

One plant is situated at Dharwad, Karnataka while the other is at Pantnagar, Uttarakhand. Some amount of production could perhaps be diverted to the Sanand facility in order to ensure that the huge unused production line is made viable since the Pantnagar and Dharwad production units are much smaller than Sanand. While Tata has not still began producing any other vehicle at Sanand apart from the Nano, it is only a matter of time before it will do so as the Nano’s sales are nothing to write home about. Watch this space!

Via IndiaInfoline

Update: Tata Motors denies this development!

Pursuant to Team IndianCarsBikes carrying this report titled “Tata Motors to use excess Sanand Nano factory capacity to manufacture commercial vehicles”, Tata Motors Limited contacted us and denied this development. According to Tata Motors,

Tata Motors has a well laid out plan for all its manufacturing facilities, focusing on specific product types. As part of this plan, the Sanand plant will continue to produce the Tata Nano only.

Team IndianCarsBikes thanks Tata Motors Limited for the prompt relay of information.

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