Tata Motors is expected to produce around 40,000 Nanos this fiscal year, but numbers will increase four-fold to a level approaching 200,000 units during the 2010/11 fiscal year.

The Hindu Business Line says the company has been compelled to use the interim plant in Pantnagar, Uttarakhand, for a large part of this year, with volume constrained as a result.

It is only from December 2009 that monthly production at Pantnagar will be enhanced to 5,000 units (from nearly 4,000 in October and November) and will stay at this level for the whole of 2010-11, the report says.

Suppliers associated with the project told Business Line that the new plant at Sanand in Gujarat would start rolling out small numbers of the Nano in February 2010. This is expected to go up to 1,200 units in March.

"Effectively, there will be nearly 40,000 cars produced from the two plants this fiscal with Pantnagar accounting for a lion's share. Sanand will come into its own from 2010-11," sources said.

Hence, while numbers at Pantnagar will stay steady at 5,000 cars per month through 2010-11, output at Sanand will be gradually ramped up to 5,000 units in May and twice as much from September 2010. November, December and January will see this further increase to 12,000 cars, going up to 15,000 units in February and March 2011.

By the end of 2010-11, the annual output at Pantnagar has been targeted at 60,000 Nanos while at the Sanand plant it will be in the region of 110,000 cars. Suppliers believe that the subsequent years could see Nano output go up even further though the half million unit mark could take a little time in coming, the newspaper noted.

The report added that the company is also believed to be working on a 684cc diesel version of the Nano, which is expected to debut during 2010-11. This could also play a key role in boosting volume in future years.