- Nov 5, 2009
REPORT: Tata may let other automakers build Nano
Tata Nano - Click above for high-res image gallery
The Tata Nano has been in production since July, and during that time, Tata Motors has reportedly sold over 7,500 copies of its $2,500 car. The Indian automaker has plenty of potential customers for its inexpensive little econo-gem, but production capacity is another matter altogether. Tata is producing the Nano with existing plant floor capacity until its new, 250,000-unit/year factory comes online at the end of March 2010.
But Tata is thinking of ways to get more Nanos to market – and it's not just limiting its options to models emblazoned with a circle T emblem. Reuters reports that Tata is considering licensing the Nano to other automakers, with or without Tata badging. Tata Vice Chairman Ravi Kant reportedly mentioned at an awards function that the company would allow micro-assembly sites to build their own Nano within India, adding, "We call it Nano, they don't have to."
Tata hasn't announced whether it actually has any partners for its vehicle sharing proposition, but if demand for the inexpensive car continues to hold strong, we suspect there will be some takers. This plan makes perfect sense for Tata because the automaker should be able to amortize some of the car's development costs by sharing its design with others. And when you're dealing with a $2,500 MSRP, every penny counts.