With petrol prices soaring higher every few months, the diesel version of the Tata Nano has become one of the most anticipated cars in India. Just like the petrol variant the automobile world is now eagerly waiting for the arrival of the Tata Nano diesel as this is also going to be a low cost car. But before any further information regarding the car has come, news has landed regarding the conflict between Tata Motors and their vendors.
Vendors had increased their capacity along with Tata Motors, when the company promised them big volumes with the Tata Nano petrol. Currently around 8000-10000 units of the Tata Nano are sold every month compared to an anticipated 20,000 per month. Tata Motors earlier put up a plant in Sanada capable of producing 2,50,000 units per annum and made the vendors to make big investment in their capacity. But the sales of the Tata Nano haven’t even reached the 1,50,000 per annum mark. And now for the diesel variant Tata Motors wants the vendors to set up their capacity of 250,000 units per annum.
The slow sale of the petrol variant has made the vendors to take this project more sensibly. Tata Motors on the other hand are trying to revise it to only 30,000 units per annum. But the lower volume of production may result in higher cost of parts and vendors are asking for some premium which Tata Motors doesn’t favor. Negations are ongoing. Tata Nano Diesel is expected to hit the markets by March 2013 but the lack of support from vendors could lead to a further delay.
Via – MoneyControl
– Kanishk Arora
