Companies

Tata Motors’ Nano sales continue to dwindle

Our Bureau Ahmedabad | Updated on January 20, 2018 Published on February 24, 2016

Mumbai: Tata Motors' Passenger Vehicle Business President Mayank Parekh during the launch of 'GenX Nano' in Mumbai on Tuesday. PTI Photo by Shashank Parade(PTI5_19_2015_000138A)

Workers’ strike at Sanand plant enters second day

Car maker, Tata Motors is experiencing a bumpy ride with its Nano car. Against the installed capacity of 2,50,000 cars per annum, the Nano car factory at Sanand produced only 42,561 cars in two-year period between January 2014 to December 2015, the State Assembly was informed.

In a written reply to a question asked in the state assembly regarding Nano car's production at Sanand, the Gujarat government informed the house that the car company had produced 18,956 cars during January-December 2014 and 23,605 cars during January-December 2015 period.

Originally set up at Singur in West Bengal, Tata Motors' Nano Car plant was shifted to Sanand in Gujarat in October 2008 following violent protests over land acquisition at Singur. Inaugurated with much fanfare and buzz, the Nano car factory could never achieve full-capacity in production as the car sales remained a challenge for the company.

As per the company data, Nano sales have been dwindling since 2011-12, when it sold 74,521 cars but the sales dropped to 53,847 cars in 2012-13, followed by 21,130 cars sold in 2013-14 and 16,903 cars in 2014-15. It was due to this discouraging sales numbers, the company has decided to make new hatchback models from Sanand facility.

Meanwhile, even as the slackness prevailed in Nano sales, the plant faced a flash strike from a section of workers. More than 300 workers at the Sanand facility resorted to flash strike on February 22, 2016 and allegedly vandalised cars inside the plant.

Terming the strike illegal, the company stated, "Around 300 workmen of Tata Motors, Sanand Plant, have gone on an illegal flash sit-in strike on 22nd February 2016, demanding re-instatement of the workmen suspended (pending inquiry) for serious misconduct."

The strike continued for the second day on Wednesday as the deadlock continued. The plant, which employs more than 2200 people, does not have any recognised labour union.

Company claimed that the plant operations have not been affected due to the strike. Meanwhile, Tata Motors shares on the Bombay Stock Exchange (BSE) fell by nearly 4 per cent to close at Rs 306.90 on Wednesday.

Published on February 24, 2016
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