- In the first nine months of 2019, Tata Motors did not produce a single unit of its entry-level car Nano but sold only one vehicle on the domestic market during February.
- It has, however, admitted that in its current form, the Nano will not meet the new safety regulations and BS-VI emission norms.
In the first nine months of 2019, Tata Motors did not produce a single unit of its entry-level car Nano, but sold only one vehicle on the domestic market during February, although the model has been discontinued yet to be officially announced.
The company has maintained that no decision on the future of the Nano has yet been taken saying that a car’s production planning is a “conscious management of demand, process inventory and expected efficiencies.”
It has, however, admitted that in its current form, the Nano will not meet the new safety regulations and BS-VI emission norms.
Nevertheless, it has acknowledged that the Nano will not comply with the new safety regulations and BS-VI emission standards in its current form.
As per the company’s regulatory filings, in September this year in the domestic market, there was no production and sales of the Nano making it the ninth consecutive month that Tata Motors did not produce the small car.
The company also hasn’t sold a single unit of the Nano in the rest of the months of the year so far, according to the filings, after selling only one unit in February this year.
Nano, who was unveiled at the Auto Expo in January 2008 with great expectations of being the car of the nation, was unable to keep up with the billing. The bee’s profits
According to the filings, Tata Motors had manufactured a total of 297 units in the January-September 2018 period and sold 299 Nano units on the domestic market.
With regard to the question of discontinuing the Nano, Tata Motors maintained that “Product life cycle decisions are a holistic view taken after consideration of market trends, legislation and changing the competitive landscape. Any such decisions are announced as and when they are produced.”
Company officials had, however, indicated that the Nano’s production and sales will stop from April 2020 as Tata Motors has no plans to continue investing in the dream car of Ratan Tata to meet strict emission standards under Bharat Stage VI and other safety regulations.
In March 2009, the Nano has released on the market with an initial price close to Rs 1 lakh for the basic model following cost increases, with Tata insisting that “a pledge is a promise.”
Nano, however, courted trouble from the start. It was originally planned to be rolled out of the proposed Tata Motors plant in West Bengal’s Singur, where he faced intense political and farmer protests against land acquisition. The company had to shift its production to a new plant in Gujarat’s Sanand.
The car’s initial instances of catching fire after it was released did not help its cause either.
Tata acknowledged the company was making the mistake of marketing the Nano as’ the cheapest car.’
It transforms into a loss-making template for Tata Motors with ex-Tata Sons chairman Mistry, suddenly removed from the post, also saying that the Nano “consistently lost value, peaking at Rs 1,000 crore.”
Mistry also named the Nano one of the “legacy hotspots” and “no profitability row, no turnaround plan” existed for the Nano.
He had also said that for “emotional reasons” Tata Motors had not stopped producing the vehicle.