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Posts Tagged ‘People’s car’

The other day, I was reading an article on Rediff about Tata’s pullout from Singur. Generally, the discussion board below each article consists of a lot of angry exchanges (people venting their frustration), but I happened to fine an very amusing oneliner:

NANO is now TINO.

The explanation given was TINO implies There Is No Option. Well, there was no option but to pullout. But, now after the pullout, there are actually lots of options. Gujarat, Maharastra, Karnataka, Orissa, all making offers. Yesterday, Tata Officials  even met Yedurappa, the Karnataka CM.

Where will Nano eventually rollout from is quite unknown at this stage, but NANO is definitely not TINO. Come to think of it what even happened to TINY.

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Well, after weeks of dialogues from both parties, the verdict is out – Tata will not produce the Nano car at the Singur Plant, West Bengal. This was confirmed today by Ratan Tata, chairman of the Tata group. The announcement could not have come at a worse time with most of the country in preparation for the “puja” season.

So what has caused this decision? Was it the deadlock with the government or were the Tatas realizing fast that the longer they wait, the more losses they incur in the long run? The most important question is where would the Nano be produced now? With the roll out dates shifting constantly, the whole project now seems to be hanging on fate of uncertainty. September end was possibly one of the first milestones which Tatas had identified as the potential month for the roll out of this car. But with the decision to pull out of the Singur plant now, this date seems to be pushed down into the calendar. We might even have to wait for at-least six more months before getting the Nano on the roads.

So how would the Tatas roll out his car? Would they get a new plant in Karnataka? The government here is keen to attract investment in the state and shake the image of an “IT-ONLY” state. It would also give huge employment benefits to the local people besides creating new market for small term industries who could potentially supply raw material to Tata plant (if built).

My take is that Tata would have a planned roll out. It may distribute its production between Pune and Pantnagar which have capacities to handle the Nano production as the new plant construction in Karnataka would take a lot of time. It is believed that the Singur plant was constructed in two years time !

And would this have any impact on the price of the Nano? Only time would tell. Comments are welcome.

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