The production of the country’s cheapest car, Tata Nano, has been temporarily stopped as Tata Motors has decided to shut down the Sanand plant in Gujarat for “routine maintenance” for about 40 days.
The plant that is currently operating at just 5per cent of its annual capacity has been closed for a few days for upgrades, a company spokesperson said.
“It is a routine shutdown. The plant will remain shut for about three to six weeks as it is undergoing maintenance, routine upgrades and re-tooling for upgradation of a new variant,” said the spokesperson.
The Rs 2,000-crore plant has an annual capacity of 2.5 lakh cars.
According to company data, in May, 1,001 Nanos were produced, and a similar number was sold in the domestic market. In April, 1,032 cars were produced and 1,027 sold in the country.
Over the years, Tata Nano has seen poor demand and a resultant pile-up in inventory that is evident at the plant that is filled with unsold cars.
In FY14, 21,129 units of the Nano were sold.