Tata Nano may have failed, but the Sanand factory that gave birth to the fabled small car is gearing up for second innings on the back of the success of Tiago and Tigor models. Hitching a ride back on these models in India’s competitive passenger vehicle market, Tata Motors is looking to ramp up production at the facility by 25 per cent to 150,000 units per annum, even as it remains non-committal to the fate of Nano, which made Sanand transform into a flourishing auto cluster. Helped by manufacturing improvement and operational efficiency measures, the factory has been able to steadily enhance the output. It has increased the cumulative production from 10 billion in September 2011 to 20 billion in October 2013, and 30 billion in June 2017 to 40 billion in January 2018. It now plans to increase it to 50 billion by October 2018. From 205 vehicles per day capacity in FY 2017, the plant can now churn 450 vehicles a day, and targets 500 vehicles per day by the end of FY 2018-19. It has also managed to reduce the variable conversion cost from 30 per cent in FY17 to 60 per cent now, said Mayank Pareek, president, passenger vehicle business unit at Tata Motors. ALSO READ: Tata Motors plans to roll out 10-12 PVs on Omega, Alpha platforms in 5 yrs “Turnaround 2.0 is about focused effort on passenger vehicle business,” said Pareek, adding it was based on the three pillars — sales enhancement through new product launches, cost reduction and growing operating efficiencies.
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