Tata Motors experiencing drop in sales – Nano down by 45%, Indigo and Vista down by 40 % in last quarter
New Delhi: The country’s leading car maker Tata Motors is facing troubles to generate expected sale volumes in the domestic market. The company has invested more than 2 thousand crore rupees this year in order to improve the establishment standards as well as to promote their models in the Indian market.
Tata Motors had recently established Sanand Facility by spending the respective investment money and the unit is made capable of producing 2,50,000 units per a year which is absolutely large. But the company had a deficit of sales over past few quarters and it has been noticed by the company. Tata was not even using one fourth capacity of the manufacturing unit and statistics of sales are also very disappointing.
The plant was actually built for the production of Nano only but as the sale volume of Nano in the Indian market is not sufficient to use the full capacity, the manufacturer decided to produce other models too at the plant. Thus Tata will be manufacturing Indica, Indigo, Vista, Sumo, Manza, Venture and Safari Storm as well at the same plant along with Nano.
As per information from Business Standard Mr. Karl Slym, the Managing Director of the Tata Motors stated “To be economically viable, you obviously have to ensure using your assets. Therefore, for us, it is important we end up using our assets suitably. There is no reason we should not have other vehicles there”.
Tata Motors had a 5 % growth in sales of car and utility vehicles on a whole during the first quarter of fiscal 2012 – 13 which has fallen by a remarkable 36 % by the end of third quarter of same fiscal. The sale volume of Nano was also down by 45 % and other variants including Indica, Vista and Indigo CS have fallen down by 40 %. The market share of the company also slashed by 10 % and half of the full capacity of plant has remained unused. We shall wait and see how the next fiscal turns out for Tata.
