Tata Motors hopes full capacity utilization of its Sanand plant by March

Tata Motors expects to be able to reach its target of using the total installed capacity of producing 2.5 lakh units of the Nano a year at its Sanand plant. The increase in the contribution of exports along with the launch of new versions of Nano are expected to catalyze the increase in uptake of the Nano. Increased dependence on exports would surely help the firm to alleviate the unpredictable domestic sales experience of the compact car.

According to what Mr Prakash Telang, the managing director of Tata Motors of Indian operations told the Business Line, they would not deviate from the target that they had announced earlier; also they would focus on the domestic sales and exports to reach their goals.

When questioned about the manufacture of other vehicles such as the Ace LCV at the firm, the revealed that the folks at the firm feel that such a step was not needed. The company would remain focused on the development Nano and its various new versions which are expected to be launched by March next year. New markets for exports outside India are also being considered. Apart from India, Tata Nano is also being sold in Nepal and Sri Lanka.

The automaker also said that the monthly output of the plant in which only Nanos are produced would almost be doubled to 20,000 units by the end of this month.

In October sales of Nano had touched 3,868 units which has been the highest sale since June of this year. However the decline in the sales of the car has made it difficult for the company to take its sales consistent. This was lower than the sales of April.

Mr Telang also feels that the Nano sales are actually doing better than what is being reported every month. We can now conclude that the company already has enough inventory/stock at dealer and factory ends as a result of which it does not require to actually produce large number of units.