The hype around Nano may have ensured bookings of over two lakh units for the car, but production constraints could continue to plague Tata Motors for some years.
The hype around Nano may have ensured bookings of over two lakh units for the car, but production constraints could continue to plague Tata Motors for some years.
In fact, if vendors are to be believed, deliveries on just the first lot of bookings could stretch beyond 2011.
Thanks to the Singur fiasco, Tata Motors’ initial production schedule had gone haywire and the company was forced to use its facility in Pantnagar for fulfilling interim demand.
At Pantnagar, the company plans to make about 50,000 units till the “mother” plant at Sanand is commissioned in the first quarter next year.
The installed capacity at Sanand is still as per plan —at 3.5 lakh units. But vendors indicated on Tuesday that actual production in the first full year (2010-11) would not be more than one lakh units.
In fact, according to discussions between Tata Motors’ officials and vendors at Sanand on Tuesday, even the second full year of operations (2011-12) would see only 2.5 lakh Nano cars being made at Sanand. The full capacity of 3.5 lakh units would be utilised only in 2012-13. A Tata Motors spokesperson confirmed deliveries of the first one lakh Nano cars would be “on schedule, beginning in July and completed by the December 2010.” On the issue of production ramp-up at Sanand, he merely said, “The 3.5 lakh installed capacity there will obviously be utilised in phases.”
Meanwhile, vendors indicated that any talk of setting up satellite production facilities — where partially built Nanos may be assembled — was premature.
“There is no way Tata Motors can set up assembly facilities till the mother plant is up and running. Anyway, 2011 or so is the time when Tata Motors will itself get clarity on the actual demand for the Nano, so satellite plants would be a possibility only at that time,” a vendor said.
Completing deliveries to all who booked in the first lot could thus take beyond 2011, vendors said.
On whether the Pune facility, which is supplying engines for the Nano, could be used in the interim to meet supply shortfall, vendors said the assembly shop at Pune does not have the requisite capacity.
At Pantnagar, the total installed capacity is 2.5 lakh units and this plant was initially built to produce the mini truck ACE. Only an additional assembly line has been added for the Nano. It seems the powertrain and weld shops are unable to handle Nano volumes so that engines are needed from Pune and a lot of stampings are welded by the parts suppliers themselves.
At present, only about 30-40 Nanos are being made a day at Pantnagar.
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