Tata mulls Nano assembly in Pune

Tata Motors is evaluating options to set up a new assembly line for the Nano in Pune. The idea is to scale up production to meet anticipated demand for the Rs 1 lakh small car that will be launched on March 23.

The move comes amid worries that Tata Motors may not be able to produce enough Nanos at its Pantnagar plant in Uttarakhand. Top officials are concerned enough to consider supplementing production with an additional assembly line in Pune.

Tata Motors was forced to relocate the Nano project from Singur, West Bengal, to Sanand, Gujarat, last year because of protests by farmers over land acquisition. The factory in Sanand is under construction.

Production of the Nano is running behind schedule largely because component vendors, who were displaced after the company had to leave Singur, are struggling to keep supplies going from plants across the country.

Also, in another Nano- related development, Tata Motors is working on a micro-hybrid version for the Nano. The carmaker is in talks with Bosch for sourcing the technology that is already being used by Mahindra in India.

The start/stop system, developed by Bosch, has the potential to reduce fuel consumption and CO2 emissions by around 8 percent in urban traffic. The component major makes the start/stop system for Indian vehicles at Bangalore. Globally, it sells the start/stop system to various automakers, including BMW and Fiat. Besides Mahindra, it is also in discussions with other car companies to sell the system.