Suppliers in a catch-22 situation of Nano production

 Suppliers in a catch-22 situation of Nano productionAfter the Indian auto major, Tata Motors has inaugurated its Sanand plant recently; the company has set a target to raise production of Nanos to 1,200 a day. However, the ambitious target of the company has put a lot of pressure on automobile parts suppliers struggling to meet frenzy for cars.

Currently, the company is operating on a single shift of eight hours by which it produces nearly 150 Nanos a day at the Sanand unit, and similar is the production scenario at its Pantnagar unit which takes the total unit production of the product close to 9,000 units a month.

While the component makers in the Indian market are already struggling to cope up with the 25% rise in car sales since April, the massive expansion in the plans to scale up the production of Nano, will surely put a lot of pressure on the component makers. Recently, facing a supply crunch from the sides of the vendors, a host of auto majors had to import critical parts such as batteries, tyres, windscreens, glass-packs and wheel rims from the south-east Asian markets.