Tata Motors had sold only 509 units in the month of November which is an alarming number looking at the anticipations from the market where everyone took Nano to churn out volumes for the company. Tata Nano vendors have been seen worrying over the current sales figures given that they intended to put up their total production lines in Sanand. As of now, only a few vendors have fully set up their manufacturing unit completely out of the total 41 plots allotted to the vendors.
It is learnt that Tata Motors has called for a vendor meet this week to address the issue. Vendors are likely to divert capacity to other manufacturers as 80-90% of the total capacity is flexible for other models and manufacturers. There has been nearly 21 percent jump in overall car sales in India and auto parts are in great demand from various manufacturers. Thus, vendors are rethinking about investing solely in Tata Nano project where the sales are yet not so impressive. “Our pricing was based on the volumes. With volumes taking a knock since the last few months, our viability is in question,” said a leading north based vendor.
Tata Motors confirmed meeting with the vendors stating that it was a general periodic interaction. However, one of the vendors at the meeting requesting anonymity stated that it was basically a confidence building exercise. “Vendors were given a sneak preview of demand and supply scenario and projections in the coming months,” he said.
