AHMEDABAD/MUMBAI: Tata Motors has told its vendors on Wednesday that it will raise production of Nano, hoping to build confidence after the small car sold only 509 units in November. Nano vendors, worried over falling sales and cut in production, have met the automobile major's top brass in Mumbai. Tata Motors spokeperson confirmed the meeting but said it was a periodic interaction.
“It was a confidence-building exercise. Vendors were given a sneak preview of demand and supply scenario and projections in the coming months,” said a Nano vendor, not wanting to be identified.
The company said in a separate communication to dealers that it plans to introduce new financing packages to boost sales. Many dealers have refrained from picking up fresh stocks as they were trying to sell existing cars.
The production has come to a near standstill at Sanand in Gujarat and this situation will contnue in January . Tata Motors, however, said in a response: “There is no plan to stop the production of Tata Nanos in January. On the contrary, the Sanand plant is producing as per a plan, the objective of which is to gradually ramp up production. There is a market potential for more than 15,000 cars a month.'
Faced with huge pressure on margins, exclusive vendors of Nano are diverting production to other manufacturers as the domestic car market has been growing at the rate of 25-30 %.
“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.
The scompany said that plots had been allocated to 41 vendors at the vendor park in Sanand. The automotive industry normally slows down production at the end of the year as customers prefer to buy cars made in the new year.
Out of the 41 vendors, who have been allotted land in Sanand, very few have fully established their component manufacturing operations, the company said in a response. “Therefore, this kind of production dip was anyway there in our plan,” company executives say
“It was a confidence-building exercise. Vendors were given a sneak preview of demand and supply scenario and projections in the coming months,” said a Nano vendor, not wanting to be identified.
The company said in a separate communication to dealers that it plans to introduce new financing packages to boost sales. Many dealers have refrained from picking up fresh stocks as they were trying to sell existing cars.
The production has come to a near standstill at Sanand in Gujarat and this situation will contnue in January . Tata Motors, however, said in a response: “There is no plan to stop the production of Tata Nanos in January. On the contrary, the Sanand plant is producing as per a plan, the objective of which is to gradually ramp up production. There is a market potential for more than 15,000 cars a month.'
Faced with huge pressure on margins, exclusive vendors of Nano are diverting production to other manufacturers as the domestic car market has been growing at the rate of 25-30 %.
“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.
The scompany said that plots had been allocated to 41 vendors at the vendor park in Sanand. The automotive industry normally slows down production at the end of the year as customers prefer to buy cars made in the new year.
Out of the 41 vendors, who have been allotted land in Sanand, very few have fully established their component manufacturing operations, the company said in a response. “Therefore, this kind of production dip was anyway there in our plan,” company executives say
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