Tata Motors has reduced production of all passenger vehicles, except the Nano compact, by 15-20 per cent in April, according to industry sources.
March inventory
Production has been lowered in order to clear the accumulated inventories from increased production in March.
Automakers usually increase manufacturing in March as sales are higher in the month. This is because buyers prefer purchases in the month to save depreciation costs.
“It happens from time to time for balancing of production. For the Nano we are slowly ramping up production, so only the other passenger vehicles have been affected,” said a company spokesperson.
Tata Motors models, which would see reduced production includes cars from the Indigo and the Indica series, besides utility vehicles such as the Safari, the Aria and the Sumo.
Tata passenger vehicles are mostly made at its plant near Pune.
Nano target
For the Nano, the company expects to increase production to 15,000 units this month (from the previous level of 9,000 a month) and then reach slowly its target of manufacturing 20,000 units a month with in this fiscal.
The Nano is made at a dedicated plant in Sanand, Gujarat, with a capacity of 2.5 lakh units a year.