Tata Nano Production Begins in Gujarat

The new Tata Sanand plant in Gujarat began trial production of the manufacturer's very low cost Nano, with commercial output expected to begin this April. The new factory will help Tata meet the increased demand in the Nano and set it on its way of achieving its production target.

"We have started the trial production of Nano in Sanand and commercial production should start in another two-three months," vice-chairman Ravi Kant told the Hindustan Times.

According to the initial figures, the new facility will allow Tata to double the current monthly output of 4,000 units. So far, the Nano is being assembled in Pantnagar, Uttarakhand.

"The ramp up of production will be gradual, and I will say that, by August, the number of cars produced in the factory will be substantial," a company spokesman added.

Originally, Tata planned to build the Nano in Singur, but the new facility was sabotaged by farmers who violently protested their land being used to build the plant.

According to Tata's books, so far 203,000 Nanos have been ordered, but only 21,500 were delivered. By the end of 2010, Tata hopes to reach the 100,000 Nanos delivered mark. An understatement, suppliers say...

"Post April, at least 8,000 units of the car will be produced cumulatively, which would ensure that allotment to the first 100,000 customers would be exhausted much before the end of this year," an anonymous supplier said. "I would expect Tata Motors to start fresh bookings in the second half of next year."