Tata Motors to take ‘concerted’ decision on Nano
Tata Motors Ltd will take a “concerted decision” on the Nano, chairman N. Chandrasekaran said on Tuesday, as the company has to work towards improving cost structure across various platforms and introduce new models and platforms in the passenger vehicle (PV) business.
In a statement released on Tuesday, the office of Cyrus P Mistry, the ousted chairman of Tata Sons Ltd, said that all decisions at Tata Motors should be taken with due regard to the consequences on all stakeholders.
The PV business accounts for a mere 3% in the consolidated revenue of Tata Motors.
“We can’t just switch off one product and switch on another,” Chandrasekaran, who is also Tata group chairman, said in response to shareholders’ questions on the future of Nano at Tata Motors’ 72nd annual general meeting. “We need to take a holistic view,” he said as he stayed clear of offering a direct answer to the fate of a model that attracted much global attention owing to its low price tag.
With sales hovering at 500-plus units every month, the Nano has been a source of big worry for Tata Motors’ troubled PV business. Chandrasekaran conceded that even as the last few launches have done well, volumes need to pick up further and the business has a long way to go.
Meanwhile, touching upon Tata Motors’ plans for electric vehicles, the newly appointed chairman said while there are products in the works, the “company does not have a scale-up plan”. “It’s an area we want to focus on whether it’s in the truck, bus or car segment and we will come up with a detailed plan.”
Tata Motors has outlined a capital expenditure of ₹4,000 crore for the current fiscal, but it will pump in investment “only where it is justified”, said Chandrasekaran. The firm will continue to explore non-core businesses it wants to exit in a bid to strengthen the balance sheet.