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Tata Motors resumes Nano car production trials

The car rollouts will begin later this month

Vinay Umarji  |  Ahmedabad 

After close to a month long closure, has resumed production trials of the Nano car at its Sanand facility.

Post maintenance, the production trials are believed to be for a new Nano variant. The company had closed the facility citing maintenance and re-tooling for new variants last month.

"The Sanand plant has started production trials and the car roll-outs will begin later this month," the company spokesperson stated.

However, according to vendors, orders have begun picking up pace from for the Nano car after a gap for 3-5 weeks.

"We had curtailed production during the period when Nano plant was closed. Now that the company has resumed production, we have begun receiving orders for the new variant," said one of the vendors situated in the vendor park.

In the meantime, rising inventory has been a cause of concern amidst slowed demand. "Demand has been almost stagnant which is making it hard for to reduce inventory. However, market sentiments should should improve after the budget," said a Cargo Motors official on condition of anonymity.

What's more, to push sales and reduce inventory, the company has been sending employees in the field to work with dealerships. "As is usual practice, plant closure periods are regularly used to send select employees in the field for cross functional development and training," the company spokesperson said.

Meanwhile, according to the company, its new Nano Twist has seen improved demand. "We have seen a good pick up of the new Nano Twist and we are beginning to see stronger retail sales with its repositioning as the smart city car," the company spokesperson had earlier stated.

In 2013-14, Tata Motors produced 21,358 Nano models as against the plant capacity of 250,000 vehicles.

First Published: Fri, July 11 2014. 20:59 IST