Tata is facing what cannot be described as “nano” challenges. After an extensive land dispute with farmers in Singur, India, over what they described as unfair compensation given for their land, Tata abandoned the US$350 million Nano manufacturing factory.
Then in October 2008 at the Johannesburg International Motor Show (JIMS) we were told that the US$2 500 Tata Nano would be built and keep its promise as the world’s most affordable motor car.
At JIMS, Tata said production would move to Tata’s existing factory in Pantnagar in the north. But because of the factory delays, the company will fall far short of annual production target of 100 000 units, meaning deliveries will also be late in India, Africa, Asia and South America where the car was meant to start selling before elsewhere. Tata will have to expand its production facility in order to accommodate Nano production.
Hopefully there is no more holding back production.
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