TATA Nano's Pantnagar plant to hit full capacity soon

Tata Motors (TATAMOTORS.BO : 517.85 +28.2) on Monday said the company will be hitting full production capacity at its Pantnagar plant in Uttarakhand for Nano in the coming months. The company, meanwhile, is preparing to start test production of the car from its new mother plant in Sanand, Gujarat, by January-February 2010. The commercial production of the Nano from Sanand is expected to start around the same period. The plant will have an annual capacity of 3,50,000 units. This is a delay by a couple of months, if vendors have to be believed. Earlier, according to the vendors supplying for the Nano, the test production at Sanand was supposed to commence by October this year followed by commercial production early next year.
"We should be hitting the full capacity at Pantnagar by next month or so," said Ravi Kant, vice-chairman of the company. He added that the Pantnagar plant has an annual capacity of 2,50,000 units, of which the company had kept 50,000 for the Nano.
Asked what the current production level at Pantnagar is, PM Telang, managing director, Tata Motors, said, "At present, we are producing 2,500 to 3,000 Nano cars per month from Pantnagar, which will be taken to 4,000 units per month soon."
In July, the company began delivery of the Nano and delivered 2,475 cars. On cancellations, Rajiv Dube, president-passenger vehicles division, Tata Motors, said, "There have been cancellations but there is nothing to worry about." However, when contacted, a renowned dealer in Mumbai said, "People who will get delivery of the car by 2013 have come ahead to cancel. There are cancellations close to 40%."
Talking on the Singur land, the earlier site for the mother plant of Nano and the possible interest of a third party in the land as mentioned by Ratan Tata at the annual general meeting of the company, Kant said, "We are in talks with the West Bengal government and are waiting for reply. We will take the appropriate solution as and when requried. The land is on lease with the company." The company said the shifting work at Singur has been completed. However, the chairman has reasserted its desire to go to West Bengal in future.
"We plan to launch Nano Europa by 2011-12. Our current focus is theIndian market," said Tata. Tata Motors will be launching a sub-one-tonne carrier this Wednesday in Mumbai.