In a bid to tackle declining volumes in recent years and boost plant viability and margins, Tata is reworking production at its six plants.
Planned measures include closing assembly lines and shifting production between plants, The Financial Express reported. The automaker will also add products at plants that were previously dedicated to certain models.
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The Sanand plant in Gujarat which makes the Nano rolls out only 1,000-2,000 cars per month despite having capacity to build 20,000. The company plans to build at this site a high volume model, which will be a new small car based on the ‘X0’ platform.
A source told The Financial Express that from 2015, “Tata will make a new small car at Sanand to replace the Indica eV2, which is over a decade old in design.” The car, priced between INR300,000 (US$4,966.16) and INR400,000, “will compete with models like the Maruti WagonR.”
The company is also making changes at its facilities in Pune, Maharashtra. Sources told the newspaper that the Indica Vista hatchback’s replacement model Bolt is being moved to the plant in Pune. The Vista hatchback was previously produced at the Ranjangaon plant which is used by the Tata-Fiat JV. The Ranjangaon plant will continue making the Tata Zest sedan, along with the Fiat Linea and Punto models.
Meanwhile, the automaker is shifting truck production from the plant in Lucknow to the Pantnagar plant to tap the tax incentives provided by Uttarakhand state at the site.
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By GlobalDataThe Financial Express also reported that Tata is continuing with block closures at some facilities such as those in Jamshedpur and Pantnagar. These moves are aimed at keeping inventory levels in check. The Pantnagar facility, for instance, is closed four days in a month, besides Sundays.
