Tata to Boost Nano Output Despite Super Sales Drop

Tata Motors has a different perception on how to fix things when sales are going exactly as planned. After recording the worst month since the launch of the Nano, the Indian manufacturer is making plans to boost production of the world's cheapest car. Why exactly? We don't really now, but the news has been confirmed for the Wall Street Journal by three component suppliers working with Tata Motors.

It appears that the Indian carmaker held a meeting to discuss its future plans, emphasizing that it wants to increase Nano output, but production figures aren't yet available. However, voices familiar with the matter hinted that Tata rolls off the assembly lines around 70 Nanos per day, a total of 2,000 units per month. However, Tata Motors has a lot higher expectations.

The figures are about to be increased to around 15,000 units per month next March, with production projected to double later in 2011.

"In fact, even if Tata Motors starts making 15,000 Nanos a month from March, it'll be half of the originally planned volume," an executive told the aforementioned source. "At current volumes, it will be very difficult for us to make money on the project," another part supplier added.

The Indian carmaker delivered only 509 Nanos in November, thus recording the worst month since the debut of the car, an 85 percent decrease as compared to the same month of 2009. Overall, the company has sold a total of 71,300 units since the launch of the Nano in July last year.