Trial production begins at Nano Sanand facility

Tata Motors has started trial production of the first batch of the small car Nano at its Sanand facility, the mother plant, last week. According to Business Standard, the model's commercial production would begin in March next year with the first batch of about 50 cars per day from January next year.

As per earlier reports, the company was in the process of rolling out the car from its Pantnagar plant in Uttarakhand.

Tata Motors' president, Passenger Cars, Rajiv Dube had earlier told reporters that the company hoped to complete delivery of the Nano by December next year and was trying to deliver 140,000 cars over the next 12 months to complete its present commitment.

Production at the Pantnagar plant was now averaging 4,000 units a month, with the Sanand unit in Gujarat set to ramp up output by April, according to Dube.

More recently, Tata Motors had confirmed that Nano models that had been booked would be delivered at the current prices, even if the input costs were to go up. The Indian automaker had earlier said that people who had booked the Nano would get possession of their cars by end-2010.

The company has already delivered close to 15,000 cars since July and media reports say that of the 2.03 lakh customers who initially booked the Nano, 1.44 lakh have opted to retain their bookings. Tata Motors had indicated earlier that it planned to hike capacity at the Pantnagar plant from the present 2,500-3,000 cars a month to 4,000 cars soon.

Meanwhile, according to informed sources, the company is also exploring the option of setting up a housing project in and around Sanand for its employees. They say even some of the company's vendors have evinced interest in accommodation in the proposed township project.