Nano may drive Tata Motors past Hyundai

Tata-NanoAs the Tata Motors' Sanand unit is set to roll out it first unit of Tata Nano and spruce up the volume of the world's cheapest car, it is expected that it will take the home-grown automotive giant to zoom ahead of the second largest automotive player in the domestic market, Hyundai Motors India.

According to the spokesperson of Tata Motors Debashish Ray, the company will start manufacturing its $2500 car by the 30th of April and the plant will produce 2.50,000 units on an annual basis.

Notably, the expected volumes of the Nano are almost 80% of Hyundai's total sales. It is believes that Tata Motors has a backlog of almost 1 lakh units of Nano on its books which it expects clear once it start producing Tata Nano from the Sanand unit. Arvind Saxena, Head - Marketing, Hyundai Motors India said that the company has no plans to enter the Nano segment.

However, the company will launch an 800cc engine empowered product soon in the Indian market which will take up its volumes substantially. Moreover, Hyundai Motors India being the largest exporter of passenger cars is focusing on the domestic market to fulfil its excess demand.