Tata Motors rebalances production between factories amid falling volumes

Tata Motors has been hit hard by the current slowdown in India's automotive market.

Tata Motors is rebalancing and consolidating production among its plants amid continuously declining sales. According to a report in the Financial Express, important among Tata's efforts to improve utilisation is a plan to produce a new car at the Sanand, Gujarat factory that currently produces only the Nano small car. "From 2015, Tata will make a new small car at Sanand to replace the Indica eV2, which is over a decade old in design," the report cites an unnamed source as saying. Similarly, the automaker is progressively shifting truck production from its Lucknow plant to Pantnagar in a bid to maximise tax incentives offered to it by the Uttarakhand state government. Opened in 2007, the Pantnagar facility has enjoyed an excise duty waiver for almost a decade. The factory was originally used for production of the Ace light commercial vehicle and Magic minivan.