Revival of Tata Nano: Can the World's Cheapest Car Maintain the Momentum?
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The Road Ahead
Analysts noted that the Tata Nano had shown upward growth since the setback in November 2010. Encouraged by the positive public response, Tata Motors was thinking of increasing the production capacity for the Tata Nano. The existing capacity of 10,000 units each month in the Sanand plant was planned to be increased to its full capacity of 275,000 cars per year. Many bikers were also warming up to the prospect of owning a new Tata Nano for the price of an expensive bike. Since August 2010, Tata Motors had started the open sale (without any pre-registration) of the Tata Nano and by December 2010, it was being sold in 12 states. The sale of the Tata Nano had since then picked up in five states and the company was also trying hard to reach out to its target customers in other states through its outlets and other access points. Tata Motors was planning on coming out with Big Bazaar like Special Nano Access points so that potential customers could test-drive the Tata Nano. Tata Motors was planning to capture each and every nook and corner of the Indian auto market with open sales by the first quarter of 2011...
Exhibit I: Profit and Loss Account of Tata Motors (In Rs. Millions)
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