Tata Motors is experiencing higher than expected demand for its ultra-cheap car, Tata Nano. It has decided to increase its manufacturing capacity however, the details of increase in capacity were not revealed by the Chairman, Ratan Tata.
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According to the latest annual report from Tata Motors, shareholders have been told that Nano has received unprecedented response from customers in India and overseas. However, company currently aims to meet the domestic demands first and shall cater to overseas markets in the second step.
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"Customer response in India was unprecedented.Enormous interest in the car was shown by certain foreign countries.'' Tata wrote to shareholders in the company's latest annual report. "The high volumes of the Nano range will dramatically change Tata Motors's market position," added Ratan Tata. Currently Maruti is the market leader with 51.4 percent market share in the country while Hyundai and Tata Motors have 18 percent and 13.9 percent each in the year ended March 31.
Tata Motors is currently building its ultra-cheap car at its Singur factory in eastern India. It currently has the capacity to build 250,000 units annually.
