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Tatas overcome Sanand hurdles

Sanand - the home of Tata Motors' Nano after the company was forced to shift out of Bengal's Singur a decade ago - is now in the fast lane

VIVEK NAIR Mumbai Published 12.08.18, 06:30 PM
A car being manufactured at the Sanand plant in Gujarat

Mumbai: Sanand - the home of Tata Motors' Nano after the company was forced to shift out of Bengal's Singur a decade ago - has shaken off its problems with the small car and is now driving in the fast lane on the back of the successes of the Tiago and Tigor.

The plant in Gujarat now contributes around 60 per cent to the company's passenger vehicle production, a far cry from its early days when sales of the small car took a hit.

However, then came the blockbuster products - Tiago and Tigor - and there has been no looking back since.

Operating at 100 per cent capacity, the unit has rolled out over 4.50 lakh units and expects production to cross five lakh units by October.

The number of employees, too, have increased 80 per cent to 4,500 as production has grown eight times over the past five years.

According to Mayank Pareek, president of the passenger vehicle business unit at Tata Motors, Sanand plays a key role in the company's mantra to win sustainability in passenger vehicles

The unit's capacity is expected to rise up to 30 per cent without additional investment as it focuses on getting more out of the plant's assets.

"The team here has ramped up (the capacity) very well. From around 7,000 per month around two years ago, we are now doing around 11,500 units without putting any additional investment. The buzzword is how to improve efficiency and how to get more out of the same which we have been able to do successfully. We see this unit getting 20-30 per cent more capacity without any additional investment," he pointed out.

Apart from the Nano (which it continues to produce in small numbers), the unit manufactures the Tiago and the Tigor models spread across 21 variants and also engines.

The plant also produced the first electric passenger vehicle for commercial use - the Tigor EV - even as it continues to support deliveries of the order from Energy Efficiency Services Ltd (EESL).

More models

For Sanand, there could be more in the offing as Tata Motors plans to launch 10-12 passenger vehicles over the next five years based on its Omega and Alpha platforms.

However, the homegrown auto major is yet to decide on the final allocation between the Sanand and Pune plants.

While the company has seen its market coverage increasing to 70 per cent from around 59 per cent three years ago, these products are expected to further increase its presence to 90 per cent of the passenger vehicle market over the next five years.

The first vehicle from this architecture will be the SUV Harrier (which will be made at the Pune plant) and launched in the fourth quarter of the current fiscal year.

"Sales enhancement is one of our pillars for winning sustainably in the market. Here, it is not only about increased sales growth, but also to grow at a pace which is higher than the market," Pareek added.

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