Tata Motors today opened the doors to another plant to build its $2,500 Nano compact car that will increase output to meet rising demand for the car in the south Asian market. The factory in Sanand, western Indian state of Gujrat, will build about 250,000 Tata Nano units annually. The plant may end up producing as many as 350,000 units a year.
Tata said that the new production facility will help clear the backlog of Nano.
“More Nanos on the road is crucial to establish the brand as a car for the masses,” said Vaishali Jajoo, a Mumbai-based analyst at Angel Broking Ltd. “Exports of the Nano were always in the cards and this factory will help achieve that as well.”
The Nano will make its way to Europe in late 2011. U.S. sales are rumored to start in late 2012 or early 2013.
– By: Kap Shah
Source: Automotive News (Subscription Required)