TATA motors all set to join the million cars a year club

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mrinal ali hazarika

24 July, 2010

Tata Motors, the oldest vehicle maker of India is all set to join the elite club of select few vehicle makers in the world producing million cars a year. Earlier domestic car maker Maruti Suzuki has achieved this feat.

TATA MOTORS, the oldest vehicle maker of India is all set to join the elite club of select few vehicle makers in the world producing million cars a year. Earlier domestic car maker Maruti Suzuki had achieved this feat. The production line up of Tata is wide and diverse.

It includes the cheapest car in the world and also mind boggingly expensive models such as Jaguar and Land Rover. This long line of production, especially the widely expected jump in the production of Nano, will help Tata to cross the one million mark. The company is already planning to increase the production capability of Nano up to 25,000 units a month by the first quarter of next year. The production facility of Nano at Sanand, Gujrat started it’s operation in June and is expected to reach it’s peak production capability by January 2011.

Senior officials at the company believe that with the production of Nano averaging 20,000-25,000, the company should comfortably cross the one million mark. It’s worth noting here that the current sale of Nano by Tata has already pushed behind Hyundai Motors in India in terms of volumes in June. Volume is key driver in the auto industry, because it helps them to leverage on economies of scale and facilitates bulk profits.