Vendors jam Tata Nano diesel road drive

Tata Motors is facing hurdles as far as their vendor support is concerned and this is clearly because vendors have taken a hit on profitability on account of their supplies on petrol variant and they are not too upbeat about diesel.

Currently, the total sales of petrol Nano stands at 7,000 units a month compared to anticipated 25,000 units. After this setback vendors are taking diesel launch in a more sensible manner. Vendors don’t want to set up their capacity, which Tata’s according to our sources are expected to do about 2.5 lakh units per annum.   

Tata’s is trying to revise it to only 30,000 units per annum. That’s the volume they are looking at to which the vendors are not looking at giving them any discounts. Vendors are charging some premium or at least higher pricing for 30,000 units per annum to which Tata Motors are not ready to pay. Negotiations are ongoing. According to our sources Nano will be launched anytime before March 2013.

Tata Motors said “No timeline fixed for Nano diesel launch yet”.