Tata Motors opens factory for world's cheapest car

Tata Motors Ltd. opened its first dedicated factory for the Nano mini-car, a move the company hopes will help clear a large backlog of orders for the world’s cheapest car. India’s biggest auto maker by sales will now produce the Nano–with a base model priced at Rs123,361 (US$2,611) in New Delhi–at a plant in Sanand, in the western state of Gujarat. The car is currently manufactured at a factory in Pantnagar, where Tata’s Ace mini-truck and Magic people carrier are also made. Deliveries from the new plant will start in June, but the company will continue producing the Nano at its Pantnagar factory in north India’s Uttarakhand state to help clear outstanding orders. Built with an investment of Rs20 billion (US$423.41 million), the Sanand factory will have an initial capacity of 250,000 cars, which can be increased to 350,000 per year, Tata Motors said. (June 2, 2010)