Tata Nano witnesses 50 pc increase in production

The people's car, Tata Nano is finally back on track with its selling graph tracing an upward path. The model has been suffering from low demand since a long time but now giving a good news to Indian auto major, the model is following an upward trend. Last month the company was able to make a sale of 5700 units which is a hike of 10 per cent from that of previous month.

Looking at the improving demand of this car, the company has decided to revise the production of the car. The overall increase in the production has been stretched by 50 per cent. The December figures show a daily production of 200 units which is now increased to 300 units daily. The production level is expected to further increase in the coming time.

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According to industry sources, Tata Motors will speed up the production of Tata Nano in order to improve the upcoming demand of the car which is expected to reach 21000 units by March 2011.

The improving sales of Tata Nano can also be derived from the fact that inventories lying in the dealerships are depleting with time. The Tata Motors dealers have said that demand for this small car is picking up speed but at the other end, company is not able to deliver such good number of units at once. This might result in backlogs in coming times. Moreover the dealers have said that the December production is almost sold and demand is taking an upward trend.

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The company's officials were seen optimistic towards the car sales by comparing it with the improved sales of Maruti Alto. The company is expecting the sales of Tata Nano to improve with time as the small car segment in the Indian auto market presents great opportunities for this car.

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Tata Motors has taken a number of essential steps to save the model from drowning sales among which a few include new marketing strategy and tempting television commercials. This is a major reason that the sales have bounced back after the ever low dip. Moreover Tata Motors has introduced many lucrative finance schemes which is attracting demand in the market.

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