Nano launch still under veils, dealers clueless

Meanwhile, Tata Motors officials and vendors met last week at Pantnagar in Uttarakand, from where the so called “soft launch” of Nano is expected. The officials discussed when the production of Nano can be started and the preparedness of Nano vendors in supplying the components needed.

Asked about the same, a Tata Motors spokesperson said, “I do not keep a track of day-to-day meetings. However, as said earlier, the company will launch Nano in the January-March quarter.” He did not divulge more details.

“All vendors were called at Pantnagar to know our preparedness in supplying the components and about when the serious production can be started,” said a vendor, requesting anonymity. The vendor informed that only test production was run at the plant. The Pantnagar plant can produce 3,500-5,000 Nanos per month. It is believed that Tata Motors has received an allotment of land from the Uttarakhand government to expand the Pantnagar factory for Nano production. The company always had a set up ready at the Pantnagar for the small car, which now attained great importance, said a source.

Further, the two plants – Pune and Pantnagar – will be working in tandem to make Nano happen till the mother plant in Gujarat comes up. “While parts are being made at the Pune plant, the final assembly of the car will be at Pantnagar,” a source told FE.

Earlier, the Nano was scheduled to be launched in the last quarter of the calendar this year, which could not be met due to Singur (the earlier motherplant site) land issues. Ratan N Tata, chairman, Tata Motors, had said at the company’s annual general meeting that Nano will be made available in a base model and a deluxe option, which will be sold at different prices while the base price will be the same as was announced during the Auto Expo early this year (Rs 1 lakh). We will initially launch the petrol version and then diesel subsequently, he had added.

“Considering the current situation, the company may just launch one variant for time being. Depending upon the demand and once the mother plant comes up, a decision on the other variant will be taken,” says, Abdul Majeed, auto analyst and partner, PricewaterhouseCoopers (PwC). He said only small numbers of Nano will be available at the time of launch leading to long waiting period.

Meanwhile, Tata Motors has informed the West Bengal government that no decision on returning the Singur land could be taken before the first quarter of 2009-10. According to sources in the chief minister’s office, the company has accordingly written to the state government in a letter dated October 27, 2008. The state government is apprehensive of putting pressure on the company to vacate the land as it had paid rent till 2009.

The company has also approached the Calcutta High Court earlier this month against a right to information application asking for details of its agreement with the West Bengal government on the land allotment at Singur. According to the sources, the government is looking at handing the land to the Chinese FAW Group. The Chinese auto maker, which would need almost 600 acres for the project, is also looking at launching a small car priced at Rs 1.6 lakh.