Tata Motors, the country’s largest auto maker by revenue, have reduced the production of its entry level hatchback, Nano by 80 per cent. The decision has been taken by the auto maker as sales in the Indian auto market are witnessing not so good times. Reportedly, Nano is produced at company’s Sanand plant. Sources revealed that the Sanand unit of Tata Motors has maintained a huge inventory of the model, which in turn forced the auto maker to significantly reduce its production. At present, the auto maker’s Sanand unit remains operational for a single shift plan during 4 days in a week.
As per a report published on FE, at present, the auto maker has more than 14,000 units of Nano in stock at Sanand. On the other hand, demand for the model has been reduced to just 1,500 units per month, considering the number of units sold in last two months. Interestingly, the auto maker averagely delivers 3034 units of Nano in a month, against the production potential of 24,000 units at its Sanand factory.
Tata Nano, which is known as the world’s cheapest car, is known to be a marvel for basic engineering. The car comes at an affordable price, which enables lower middle class section of society to comfortably travel in a personal car, rather than using public transport. Although Nano comes at an introductory price of Rs. 1.4 lakhs, the demand for this model has been also dwindling in the muted Indian auto market.