Reports in India suggest that Tata Motors intends to set up multiple independent assembly operations that will assemble the cars locally in batches under close supervision of the company.

The shift to such a localised mode of production would also enable Tata to reduce operational costs like transportation, excise and sales tax outgo.

Reports suggest that independent entrepreneurs will be allowed to use their brand names, alongside the Nano logo.

Nano production is being stepped up but is still far below initial plans due to the problems Tata encountered with its planned lead plant in West Bengal.