Tata Motors has shut its plant at Sanand, Gujarat where it produces its small car Nano. The plant is shut because of low demand and resulting in to higher inventory on hand. The plant is expected to be closed for next 35 to 40 days.
Next, the company will start manufacturing new version of Nano, considering upcoming festival season. The plant will be made able to produce hatchback and compact sedans in time to come. One such model Kite, may enter market in 2015, to directly compete with MarutiCelerio.
The company was operating the plant on 2-3 working days a week over last 6 months on account of low demand. “The company has had to take some tough measures. This includes keeping the plant shut instead of pushing inventory and incurring further loss. The company has been producing 2000 to 2400 cars every month for the last 6 months, but a zero schedule for June was a surprise.”
While company spoke person said that “As with all our plants, the Sanand facility is closed as per annual planning for routine upgrades, maintenance and adding of tooling flexibility for new variants. The period for this kind of maintenance work may vary and range from 3-6 weeks.”
“A CNG version of Nano or the Nano with power steering did infuse some interest in the brand, with monthly retail sales improving from 1000-1500 to the current level of 2,000 to 2,500 units.” Company said. It adds "We have seen a good pick up of the new Nano Twist and we are beginning to see stronger retail sales with its repositioning as the smart city car".
No comments:
Post a Comment