MUMBAI, India (The Statesman/ANN) - Tata Motors announced on Friday that its Nano small car was a loss-making venture in the vastly price-sensitive market in addition to the low volumes.
Echoing Tata Sons' ousted Chairman Cyrus P. Mistry, Tata Motors on Friday said its Nano small car has been "a loss-making product" in the highly price-sensitive market, coupled with low volumes, according to IANS as reported by The Statesman.
"As there is no line of sight to profitability for the Nano, any turnaround strategy for the company requires to shut it down," Mistry had earlier stated.
"Considering the attention and excitement it created, project investments were set up for capacities for around 2,50,000 cars per annum. However, unfortunately, due to a combination of several factors, including project delays due to change in location of the factory, and the perception of being a 'low priced' car, the volumes initially anticipated did not materialise and the utilisation of capacities are significantly lower," said the car maker responding to clarifications sought by the BSE.