Tata Motors to become a millionaire soon

Tata Motors to become a millionaire soonAfter the market leader Maruti Suzuki clocked a million units in the last fiscal, the home-grown auto major, Tata motors will be joining it soon.

There is no denying to the fact that as Tata motors manufactures products in a range of segment unlike the case with Maruti Suzuki that it limited to passenger cars, a widely-expected ramp-up in the production of Nano will catapult Tata Motors and pitch it to a point to reap benefits of economies of scale.

It is to be mentioned here that the company sold close to 8,50,000 units in the last year that also included the JLR unit sales but after the Sanand plant will reach at its peak, it is expected that Tata Motors should comfortably cross the million unit mark in combined truck and passenger vehicle sales.

A Tata Motors spokesman recently said that the capacity at the Sanand plant is 2, 50,000 units, and it will be ramped up as fast as is possible.

However, the industry is also expected to move in a highway from now as a study for Automotive Components Manufacturers’ Association by Ernst &Young predicts India’s passenger vehicle sales will hit 8-10 million by 2020 that it currently operating at a 2 million level.