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Tata Motors’ Nano production at less than 50% of capacity

24 Nov 2011 Evaluate

Tata Motors’ current production of Nano cars stands less than half of the annual installed capacity despite of sales increasing every month. For production of Nano, the company has installed capacity of 2.5 lakh cars per annum but it is currently producing only 10,000 cars per month. To penetrate the rural markets more, the company is in the process of setting up exclusive Nano outlets with the target segment being those owning two-wheelers.

The company has further launched the new version of SUV Sumo and its market share in the overall SUV category is 14 percent which is lower than previous years. Tata Motors is introducing more fuel efficient models to buck the industry trend of sagging sales, owing to high fuel costs and increased interest rates.

Recently, Tata Motors had rolled out a refurbish version of Nano, three years after unveiling the cheapest five-door hatchback in the world. The refurbish version was a compact car promising an even higher value proposition for the same price.

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