Tata Nano manufacturing may be outsourced: Ratan Tata

05 March 2008

Geneva: With the prospect of demand outstripping its supply capabilities for its low-cost, ultra compact car Tata Nano, Tata Motors is mulling opportunities in licensed manufacturing if it is unable to meet demand independently.

Speaking to the Indian media at the 78th Geneva Motor Show that is presently underway, Tata Group chairman Ratan Tata said that every decision must be based on the demand for the car. "If we cannot meet it, we will look at licensed manufacturing," he said.

The company has, in the past, talked of a satellite manufacturing or franchisee model as a possibility, and is now reported to be considering licensing agreements with overseas manufacturers to expedite the process of launching the ultra-compact in foreign markets.

Besides shortening the timeline to launch of the Nano on foreign shores, licence manufacturing will also have implications in cost reductions related to sourcing and logistics.

The Nano, currently being showcased at the Geneva Motor Show, is identical to the right hand drive car unveiled at the Auto Expo in New Delhi in January.

Acccording to Ratan Tata the car will have to be redesigned for markets such as the US and Europe, adding that the timeline is still being worked out, as its primary focus is to meet demand in the Indian market.