Tata Nano output down 50% because of low demand image

Tata Motors on Thursday said that output of the company’s low-cost small car Nano is less than 50% of its annual installed capacity, mostly because of low demand for the low-cost vehicle.

The Indian automaker has struggled to find buyers since its 2009 launch.

The company has a total installed capacity of 2.5 lakh units per annum for Tata Nano model, but the plant is currently rolling out around 10,000 units a month. Tata plans to set up dedicated Nano outlets in rural markets to boost sales.

In addition, of opening new outlets, Tata unveiled last week the updated 2012 Nano vehicle. The new model still has a .6-liter, rear-mounted engine and rear-wheel drive transmission, but the engine now produces 37.48 horsepower and

Moreover, the vehicle is capable of negotiating inclines with a grade ability of 30 per cent, another attribute which makes it the ideal combination of power and performance on Indian roads.

When it debuted, the Nano cost between $2,000-$2,500 depending upon the exchange of the Indian currency, the Rupee.