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.
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.
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.
[Source: Economic Times]