Tata Motors to build its next small car in the under-utilized Sanand factory

Posted on: May 14, 2013 - 4:55pm IST

Tata Motors has not been in the pink of its health lately. The passenger car division is witnessing a slow down and that has a direct impact on the firm’s capacity utilization.

Tata logo on the Vista D90

Among the most affected cars is the Tata Nano which is being built at a dedicated facility in Sanand, Gujarat. The Nano plant has a production capacity of 2.5 lakh cars per annum but sales of the little hatchback has plunged to the second lowest count in April. With only 948 units dispatched to dealers last month, the production capacity utilization stands less than an abysmal 20%.

Under utilization hurts the company badly since it shoots up the production cost per car. So Tata Motors is attempting to optimize the production at the Sanand plant by adding another model there.

Economic Times reports that Tata Motors is planning to produce the upcoming small car codenamed X0 at the Sanand plant to quicken the return of the investment made in Sanand.

Tata Indica eV2 front
Indica brand head Amit Sagar said that the Indica platform, an asset they’ve invested repeatedly into over the years, is still good to carry on.

The new small car X0 is based on the Tata Indica platform and is under development now. The car is still in the early stages of development and is quite sometime away from seeing the daylight.

When we spoke to Amit Sagar, the brand head of the Indica nameplate, he said they were looking a lot of things coming off that platform. He subscribed to the belief that styling goes old and platforms don’t.

Given the current state of affairs at Tata Motors, any new product is a welcome addition to the lineup.

[Source: Economictimes.Indiatimes.com]

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2 thoughts on “Tata Motors to build its next small car in the under-utilized Sanand factory

  1. nitin says:

    And for God`sake don’t name it indica and don’t experiment on customers…..launch a fully tested car with all possible contemporary features…. customers really get cheated when company launches upgraded vehicles within one year of launch…

  2. sandy says:

    Thats a good move for making a new car XO other then replacing Indica, but using the same platform may prove negative if they won’t work out in improving the dynamic and comfort. Expecting to witness their 1 liter diesel powertrain debuting in XO along with their new 1.2 liter petrol. But they should give more body styles based on Nano with added credentials to get back their market shares, like Maruti’s old WagonR, Estilo and Alto are based on common platform but different body styles.


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About the Author
Nithyanandh K

As a toddler, those wheeled machinery fascinated me even before I knew what they’re called as! So here I'm, petrolhead by birth, Mechanical engineer by qualification and automotive reporter by profession!