Nano facility in Gujarat to be ready by January: Tata

Tata Motors Tuesday said its plant in Gujarat which will manufacture the Nano, considered as the world's cheapest car, will be completed by January next year.

Tata Motors Chairman Ratan Tata addresses shareholders at the company's 64th Annual General Meeting in Mumbai on Tuesday. the head of India's leading vehicle maker said the country was seeing its initial signs of recovery in the auto sector but there were tough challenges on the road ahead. Tata Motors consolidated earnings for the year 2008-09 showed a net loss of Rs25 billion ($520 million) compared to a net profit of Rs21.7 billion in 2007-08.

"The Sanand plant will be ready by January next year. At first stage, the plant will produce more yellow and silver coloured cars as they are in demand in the market," Chairman Ratan Tata said at the company's Annual General Meeting here.

Tata Motors Chairman Ratan Tata, discusses with Vice Chairman Ravi Kant, and CFO C. Ramakrishna, before addressing shareholders at the company's 64th Annual General Meeting in Mumbai on Tuesday.

He said the Sanand plant would supplement the production of the Rs 1-lakh car that is now coming out of the company's facility at Pantnagar in Uttarakhand.

Last year, Tata Motors pulled out of the proposed Nano site at Singur, West Bengal, following agitation and relocated the plant to Sanand, on the outskirts of Ahmedabad.

Tata Motors Chairman Ratan Tata addresses shareholders at the company's 64th Annual General Meeting in Mumbai on Tuesday.

The shifting of the plant cost the company Rs 100 crore, Tata said, adding, the net loss on account of the relocation had not been assessed yet.

Tata Motors Chairman Ratan Tata makes notes before addressing shareholders at the company's 64th Annual General Meeting in Mumbai on Tuesday.

The car, touted as the cheapest in the world, would initially cater to the Indian market but the company plans to export the vehicle to Europe, Africa and Asia, he said.