Report – Tata Motors shuts Sanand plant temporarily to control Nano inventory

Posted on: Jun 16, 2014 - 2:27pm IST

The Tata Nano’s sales witnessed an encouraging increment in the first three months of 2014 with an average monthly figure of 2,400 units, thanks to the power steering equipped Twist variant. However, during the last two months, the Nano managed an average of only 1,014 units, a far cry from its original (unofficial) target of 20,000 units.

Tata Nano Twist Review front quarters
Lack of demand for the Nano and the re-tooling process of the plant for the facelifted version has prompted the production shut down.

According to an ET report, Tata Motors has shut down the Sanand plant which manufactures Nano in order to keep a check on rising inventory. The plant which has a capacity of 2.5 lakh units per annum was already being heavily under utilized due to Nano’s failure to meet Tata’s sales expectations. Over the past few months, the plant has been working only for 2-3 days a week owing to lack of demand for the little city car.

Tata Nano Twist Active Concept
The updated Nano will come with styling revisions, openable hatch and AMT.

The cease in production is expected to last for 35 – 45 days. Another reason for the shut down is to re-tool the facility for production of the updated Nano with openable boot and AMT, based on the Tata Nano Twist Active concept that was showcased at the Auto Expo. The vehicle has been spotted testing several times and we expect the trial production to begin once the factory is back in operation.

The Sanand plant would cater to a new hatchback and sedan that are in the works, under the codename Kite, besides the Nano variants. Expected in 2015, the new models would help improving the factory’s utilization factor.

Tata Nano Twist Active Concept – Image Gallery

[Source: Economic Times]

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5 thoughts on “Report – Tata Motors shuts Sanand plant temporarily to control Nano inventory

  1. Bhargava says:

    That’s all history. Tata Motors is transforming in a big way. As Indians, we should cheer them up, if we can.

    The yet-to-be-launched ‘Zest’ will be the first visible transformation you will experience soon.

    This interview is worth watching: http://youtu.be/ObMAVJVInM0

    Reply
    1. Bhargava says:

      This message was in reply to fintsho’s post below.

      Reply
  2. arif says:

    its fact that tata nano word more famous than a car, so from start plant is total flop,shut down the plant totally, find new horizon next

    Reply
    1. Bhargava says:

      A car manufacturing plant can be used and adapted to manufacture more than one model or type of a car. Manufacturers invest thousands of crores on building plants, and cannot be shut down permanently at the drop of a hat.

      Neither the plant nor the car are flop, it’s the mindset and perceptions of the consumers that needs to be evolved.

      The Tata Nano Twist is awesome, you need to test drive one, to believe. 🙂

      Reply
  3. fintsho says:

    Tata has not got it right with the nano. The fit and finish is not up to the mark as all tata products are. There is also not much of a cost difference between other rival models which are only slightly a bit more expensive but has a better product. I think tata should give up on the nano.

    Reply

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About the Author
Nithyanandh
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!