Published 11:11 IST, October 8th 2019
Tata Nano production comes to a standstill in 2019, only 1 unit sold
Tata Motors has not produced a single Nano car since the beginning of 2019 and sold just one unit. The sales of Tata Nano have dwindled over the years.
- Republic Business
- 3 min read
According to the official records, it has been revealed that Tata Motors has not produced a single Nano car since the beginning of 2019. While this has led to speculation about its future, the company has failed to announce any final decision. It has maintained that the production planning of a car is a "conscious management of demand, system inventory and planned efficiencies". At the same time, Tata Motors has acknowledged the fact that the Nano model cannot meet the new safety regulations and BS-VI emission norms. Overall, only one unit of the car has been sold this year in February.
Tata Motors stated, “Decisions on product life cycle is a holistic view taken after considering the market developments, regulations and emerging competitive landscape. Any such decisions are announced as and when it's taken."
The Nano dream
Ratan Tata envisaged a car model that would be affordable for many more Indians. Initially available at the price of about Rs.1 lakh, Nano was launched at the Auto Expo in 2009 with great fanfare. Despite the cost escalations, there was not much revision in its prices. Billed as the people’s car, its sales started dwindling over the years. According to Tata, promoting it as ‘the cheapest car’ was a big mistake. Company officials have been hinting at halting both the production and sales of the Nano car from April 2020. Only 299 units of the model were sold during the January to September 2018 period.
Plagued by controversy
Nano was associated with controversy even prior to its inception. Due to the agitation of the farmers backed by Mamata Banerjee-led Trinamool Congress, the company had to relocate its proposed plant from Singur in West Bengal to Sanand in Gujarat. Tata Motors was accused of unfair land acquisition practices. Also, instances of the car catching fire did not help matters. The ex-chairman of Tata Sons, Cyrus Mistry alleged that the Nano consistently lost value. According to him, there was “no line of sight to profitability for the Nano” or any turnaround strategy. He also revealed that the company refrained from scrapping this model due to “emotional reasons”.
(With PTI inputs)
Updated 11:56 IST, October 8th 2019