The status as the second largest car maker in India is on the peril for Hyundai. The other premier car maker Tata, whose Nano [images] is spreading the wave of popularity for the cheapest car, is on the verge of launching new plant at Sanand. The facility will start producing Nano in a week’s time with the capacity of 250000 units a year. This accounts for nearly 80% of the net sale of Hyundai last year fiscal. Tata has already got advance booking for 1 lakh Nanos and the operation of Sanand unit may take the company to the position of the second largest in another five years.(Nano from Sanand may roll out on the land’s Day)
Also in the small car fray would be Renault-Nissan (-Bajaj), Suzuki, and Toyota. Tata is fully aware that real profit will emulate from Nano only when the volume gets rise and the occasion is expected at the earliest, said the company official. The sad incident of two Nanos getting fire is no threat for Tata as the technicians are on the way tracing the flaw. Tata is now focusing on making the car as damage-control vehicle since the global view has considerably focused on this car. It is projected that by 2016, 1 million people may buy this Nano- which sold 30350 units during July-March this fiscal. Hyundai has the capacity of producing 600000 vehicles of bigger models from its Chennai factory.(Bajaj to launch cars on Renault platform)
The company is totally devoid of making any room for entering into the Nano segment, said its director. Tata has the blessings in the sensex index too with its share increasing to 809.4 rupees( an increase of 2.2%). At the time of announcement of Nano, Tata received advance bookings of 206703 units out of which 1 lakh customers were chosen by lot. The car has no radio nor airconditioner and has a single windshield wiper, costing Rs123,360 rupees (ex-showroom New Delhi). Tata secured a profit margin from Jaguar Land Rover, during the quarter ending December 2009. Tata got right of this car from Ford for $2.5 billion. The sale reversed the company’s image as to get rated B2 by Moody’s Investors Service.
By selling 20000 units of Nano every month, Tata foresees the increase in revenue so as to outcast Hyundai. Tata started selling cars from 1999 and got an increase of 26% in sale of vehicles(201399 units) in the fiscal year. That made the company the third largest passenger car maker, when Suzuki topped the list with 50% followed by Hyundai with 21%. The others in the fray in the small car segment are Ford and Volkswagen who target India and China to secure more income. China is the world’s largest auto market during 2009 when the sale hike by 49%.
The central bank estimate reveals that the sale of automobiles in India prompted to increase the economy with $1.2 trillion. From the start of this fiscal, it is expected, India will enjoy an increase of 8%. After Tata, the tripartite JV among Renault- Nissan-Bajaj is coming out with $3000 small car. The car is slated for manufacture in Maharastra plant at a capacity of 4 lakh units. Tata’s Nano has come a long way to reach the customers. The car is made in Pantnagar facility at 50000 units a year; Tata initiated the process of facility at Singur(West Bengal) which has to be abandoned due to the public protest. This followed with the unit at Sanand, which has the capacity of 5 lakh units with the man power of 10000. The facility is getting an investment of 20billion rupees for expansion, said the Chairman Ratan Tata. Tata’s Nano making the way, India will emerge as the most sought after market for cars, said the director of Helsinki-based Fim Asset Management.(Nissan pins on $3000 car in India)