Name: Md.

Abidur Rahman
Id: 6194336041
RELOCATION OF ‘TATA NANO’ MANUFACTURING PLANT
Tata Motors Limited is a leading global automobile manufacturer of cars, utility vehicles, buses,
trucks and defense vehicles in India, with consolidated revenues of USD 32.5 billion in 2011-12.
Tata Motors is a leader in manufacturing of commercial, passenger, military and electric vehicles.
It is also the world’s 4th largest truck and 2nd largest bus manufacturer by volume. In January
2008, Tata Motors launched the Tata Nano, also known as the "People's Car" and is also known
as the cheapest car in the world. The car was launched in March 2009 which had a significant
impact on the Indian automobile market. The main target group of Tata Nano customers is low-
and middle-income families in India, many of whom are protesting against the purchase of four-
wheelers due to their affordability and maintenance costs.
Tata Motors has halted development on a new facility in Singur, India, where it had been working
for two years. Instead, the manufacturer is shifting to Sanand, where a $417 million plant will be
built to produce the Nano minicar. The firm stated on October 7th, barely four days after its
withdrawal from West Bengal, that it will relocate and rebuild the factory in Sanand, Gujarat, in
West Central India. It was a remarkable turn of events in one of the world's fastest-industrializing
countries. Tata chose to depart West Bengal due to Mamatha Banerjee's ongoing protest over the
Nano vehicle project. Gujarat will be the new home for the project. Nano's new home will be at
Sanand, on the outskirts of Ahmedabad. Initially, the Trinamool Congress and its allies were
opposed to the entire transaction. Tata Chairman Ratan Tata said on Aug. 22 that the business may
transfer Nano production to another plant in India.
Since receiving approval for the facility on May 18, 2006, Tata has had problems. Even before the
present problems, mounting costs and delays had many industry observers questioning how long
it would take Tata to transform the Nano into a successful business. Increasing Materials Prices—
Rising material prices have had a disproportionate impact on the Nano. Tata's stock price was also
knocked down by $2.3 billion. Paying a Price-If Tata Motors withdraws from Singur, the project's
cost would rise, limiting the company's capacity to create a low-priced vehicle. A $2.3 billion
acquisition of Land Rover and Jaguar also dragged down Tata's stock price. The Tata Nano's major
issue was a delay in manufacturing due to plant relocation, which is understandable given that
setting up a facility is a difficult undertaking.
Tata Motors eventually had to pull out its Rs. 2000 crore project from Singur despite the fact that
it had already suffered a loss to the tune of about Rs. 500 crores. Tata has faced trouble ever since
it got the go-ahead for the plant on May 18, 2006. Indeed, even before the current troubles, rising
costs and delays already have had many industry watchers wondering how long it will take Tata
to turn the Nano into a profitable venture. Rising Costs -Rising materials prices have also
disproportionately affected the Nano. Tata's share price, also depressed by a $2.3 billion. Paying a
Price-If Tata Motors does pull out of Singur, it could cause the project cost to increase and
therefore impact the company's ability to produce a low-cost car. Tata’s share price also depressed
by a $2.3 billion acquisition of Land Rover and Jaguar.