Tata Nano is currently the most sort after car in India, why wouldn’t it be when it wears a “World’s something” Crown! It is so sort after that it is being bought off in second hand for more money.
Tata has announced yesterday that it will be increasing the production of Nano by 20% from this month. This means 3000 Nanos will now be produced every month to its previous 3 month’s figure of 2500 a month.
After Tata’s original plan of producing the Nano in the West Bengal plant went burst, it is currently producing the Nano in its Pantnagar plant along with its LCV Ace and hence the reason for just 2500 Nanos a month, which resulted in demand exceeding supply by 2Lakh units.
The New mother plant for Nano production is being erected up at Sanand in Gujarat. It has a capacity of 5Lakh units per annum and production will start from March next year. Now that ought to do it.
According to the statistics released by SIAM (Society of Indian Automobile Manufactures), India’s car exports between January-July 2009 stands at 229,800 units, a considerable increase of 18% from last year for the corresponding period. China has recorded an export of 164,800 units during Jan-July 2009 which is a decline of over 60% from last year.
The reason for this mammoth take over might be the fact that India is fast becoming the small car hub for leading automakers like Hyundai, Suzuki and Nissan (which is soon to open up its shop). The other factor is, it is easier to set up export bases in India than china which requires the carmakers to collaborate with local companies as a part of the export deal.
The numbers from SIAM also reveal that India is the only exporter to have registered a positive note in the entire pacific ring. Thailand has registered a decline of 43% and South Korea which is the car exporting giant in Asia registered a decline of 31% at 1.12 million units.
The latest accretion comes from Renault-Nissan, who has announced that it is going to shift the production of its small car Micra to its under-construction Plant in oragadam, near Chennai. This plant will start production by May 2010 and will have an annual production capacity of 400,000. Nissan is planning to manufacture 6-7 of its existing model in this plant. Hyundai has already made its Chennai plan it’s Global Hub for manufacturing small cars.
Chennai has a market share of around 30% of India’s Automotive Industry and 35% of its Auto components Industry. The soon to come investments are big as well with Renault-Nissan, which will be investing a sum of Rs. 4,500 on its Chennai plant over a period of 4 years. Ford is planning to invest Rs. 2500 crores on its Chennai plant. Hyundai is setting up a new engine manufacturing plant. BMW is also looking to expand its Chennai plant’s production capability.
Hyundai, Ford, BMW, Mitsubishi, TVS, Ashok Leyland, Caterpillar, Royal Enfield, TI Cycles, TAFE, Dunlop, MRF have their manufacturing plants in and around Chennai. Like Renault-Nissan, Daimler is also getting its manufacturing plant constructed in Chennai.
