Some of the leading vendors pointed out that it was not viable to have a dedicated plant for the Nano even for volumes like 250,000 cars per annum.
A dedicated line at the site with warehousing facilities was the best option to cut down logistics costs.
As of now, the vendors confirmed that they would supply the Pune plant for engine components and the Pantnagar plant from existing facilities across India.
While the initial volumes will be as low as 3,000-4,000 cars a month, the company recently indicated to vendors that it planned to produce around 70,000-80,000 cars in fiscal 2009-10. Some of the vendors, while refusing to be identified, said ramping up huge volumes in Pantnagar was not feasible.
Image: The Tata Nano. | Photograph: Rajesh Karkera
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