Tata Motors may move production base of few of its important models in a bid to improve its economies of scale. The Indian auto maker has been badly hit by the global economic downturn and has suffered almost a 51 per cent drop in sales this April 2013, compared to same month last year.
A report from the Economic Times suggests that the Indian automaker may produce its upcoming premium compact car at the Sanand Plant in Gujarat in a bid to make use of the factory’s idle production capacity. It will move the production of the Vista hatchback to its Ranjangaon plant where the Manza is currently produced. This would seem logical as it shares the plant with Fiat that produces the Multijet diesel mill that as well powers the Vista diesel. The third part of this move involves shifting production of the Sumo line up to their Pantnagar plant where the Ace commercial vehicle is produced.
The company has not confirmed any details on the car but it is believed that the new hatchback will be launched in 2015. The new hatchback will be in line with CEO Karl Slym’s ideal of designing a car that will appeal to younger buyers. Although, it will share underpinnings with Indica, the new model will will have more than 75 per cent changes to make it a completely new vehicle.
Source: ET
