Tata Motors has begun gradual wind-down of Nano from the domestic market, sources tell CNCB-TV18. The plan is to make Nano an ‘export only’ car post 2019.
Nano production in the first quarter of FY18 was down 66 percent at 785 units as against 2,352 units in the same period a year-ago.
Sources privy to the details said that Tata Motors is unwilling to deploy more capital for Nano revival. The company is wary of further investment into Nano upgradation required for the mandatory crash test for existing cars from 2019.
Also, all the cars will need to meet the BS-VI norms from April 2020.
Tata Motors told CNBC-TV18 that while the hatchback segment is very important for the company, regulations will play a major defining role for sub-segments within the hatchback segment.
Customer preference will play an important role in this. The company already has a well-defined passenger vehicle strategy in place.
The company added that it will continue to produce Nano catering to customer demand in key markets.
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