Tata's Nano capacity may be increased to five lakhs at Singur

Kolkata (PTI): The production capacity of the Rs 1 lakh car Nano by Tata Motors at Singur may be ramped up to five lakhs per annum in three years, if vendors planning to supply components, are to be believed.

"Tatas plan to increase production capacity of Nano at Singur to five lakh vehicles in three years and we are ready to cope with demand for components," claimed Sandipan Chakravorrty, Managing Director of Tata Ryerson, which is one of the key component suppliers for the Nano.

Tata Motors has announced a first phase production capacity at 2.5 lakh per annum for Nano, which could be expanded further. The small car is to roll out in the third quarter of the next fiscal.

Chakravorrty said, "the margins from this project would be lower, but it will be compensated with volume. We will achieve break even once the production capacity of Nano reaches 2.5 lakh."

He said: "We are investing Rs 100 crores at Singur and work at our unit at the vendors park is in full swing on a 10 acre plot. It will be ready before Durga Puja (October)."

Tata Ryerson, a 50:50 JV between Tata Steel and Ryerson Inc, will supply the load bearing member (chassis for the car) and 16 non-load bearing components.

Chakravorrty said the components, which would use a technology which would be the first in Asia, were tested in international laboratories