Tata loss delays Nano launch indefinitely
February 2, 2009 by Matt Brogan
Tata posted an unexpected loss in its fiscal third quarter (down 32 per cent) which, according to Managing Director Ravi Kant, could delay the launch of its Nano budget model indefinitely.
It’s worrying news for the global car industry following the Indian brand’s recent acquisition of Jaguar and Land Rover brands from Ford Motor in June 2008.
Tata temporarily closed some plants in the December quarter to prevent a build-up of stock but as local vehicle sales fell to 98,760 units in the quarter (from 144,608 a year earlier), coupled with a sales fall at Jaguar Land Rover (down to 49,000 from 76,000 year ago), the brand now faced a less than bright future.
Earlier this month, Jaguar Land Rover also announced it would cut 450 jobs.
Chief financial officer C. Ramakrishnan said the company was in discussions with banks to refinance $2 billion of bridging loans, having already paid back $1 billion.
The loans, used to fund the $2.3 billion acquisition last year of Jaguar and Land Rover from Ford, need to be repaid by June.
Tata Motors posted a loss of 2.63 billion rupees ($54 million) in the December quarter, which included a foreign exchange loss of 2.27 billion, from a 4.99 billion profit a year earlier.
Tata said auto demand in India had severely contracted as a result of financial market turmoil and weakening growth.
“I do believe we had the worst in the December quarter, and don’t expect to see [a repeat of] anything like that. We are on a positive trend on the ascendancy curve but it’s going to take time,” Kant said of the Nano, “It’s a fairly complex project.”
No date has been set for the rescheudling of the world’s cheapest car, for now it’s wait and see.
Print it: 
*****PRIMO!*****
This vehicle is rapidly becoming vapourware.
Now we know why nobody else has built a US$2500 “car”, simple, because it cannot be done and make a profit.
Maybe the huge outlay for Jag and L/R is starting to really hurt them.[As i said it would]
All lies, if they built it, at that price the public would buy it.
Cheers
F-0
I’ll bet Ford is glad they disposed of Jag/LR – sales from 76,000 to 49,000 in one year.
I guess Tata will put them on the market again???? They should offer them to Chrysler, they’re always looking to get into bed with someone.
F-O, you wouldn’t seriously suggest this should be sold outside of India? I doubt it would meet any sort of safety standards in other markets..
well i’d rather buy a second hand car than this cheap ride that will easily win an award for worst car design. If i were to decide at Tata, i would tell them to cancel this car’s production completely.
“F-O, you wouldn’t seriously suggest this should be sold outside of India? I doubt it would meet any sort of safety standards in other markets.. ” Funny though there are many other countries that have the laxed safety regulation like India, add them all up, its a bigger market than the USA. This car is potential, but as F-O stated, a $2500 car… is there even a worthwhile margin on the sale, even the repairs and servicing may all add up comparable to the cost of the car…
As hideous as it is, for the price if it does happen to sell it, is very alluring to the cheap cabbies, bajaj riders looking for a new vehicle..
Don’t need rubbish like this clogging the roads.
I would be interested in 1 for AUS$3250, would not pay any more than that.
It would be a 3rd. vehicle, to run down to the shop, city lanes parking, supermarket trolley rash [who cares!] running around the farm, no more than say 80km in a sitting
its only moped/ride-on-mower coinage.
Its not a Benz with 5-star-safety, but its a MILLION times safer than a moped/motorcycle, u dont get wet, u cannot fall off, and u can lock it all up etc.
BUT….it needs to be built first.
The real MAIN reason is to enter the C/A sponsered NanoCup, motor racing for the masses at the cheapest possible price
Cheers
F-0
^If it was your 3rd vehicle, I don’t know why you’d bother. Your 1st and 2nd cars could probably do what you’re describing F-O (run down to the shop, city lanes parking, etc). A ride-on mower could probably be a better option :P.
If companies like these that have slave wages and can pollute their soils and waterways are having a hard time of it what can be expected from our companies???? that’s not FREE trade or a level playing field!! So i wouldn’t feel too sorry for them!
Well Car Tuning, that would make you an idiot then. There is no doubt that this car will sell in the millions if they only started building it. The fact is that it’s made for Indians that would be upgrading from a motorbike and they probably could afford this. Canceling production would be stupid as it would end the company. If they keep it going and make it a success, which I think they probably will, it would save the company.
Why doesn’t Ratan Tata put some of his own money into it? Last I read he was worth about 35 billion.