Sunday, August 28, 2011

Tata Motors resumes production of Tata Nano at Sanand

Earlier today, Tata Motors released a press report stating that the production at their unit in Sanand near Ahmedabad has resumed. About a fortnight back, Tata Motors had shut down the production at the Sanand unit completely.

Though Tata Motors is now saying that the Sanand unit was shutdown in order to carry out some urgent maintenance activity. According to Tata Motors spokesperson, "Production at Sanand plant has resumed after a temporary suspension for about a fortnight."

Tata Motors is the 3rd largest car manufacturer in India currently. So by shutting down their entire manufacturing unit for 2 weeks they in a way slowed down their growth rate in the country. According to the spokesman, the reason behind shutting down the unit was done due to , "This (suspension of production) was done for maintenance and to rationalise and align inventory."

But we do not think that Tata Motors would have suffered huge losses due to the shutdown as sales of Tata Nano are already on a decline. Tata Nano sales as the month of July, declined by 64%, compared to sales made in July 2010.

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