Tata Motors safeguarded its method for producing the $1,500 Nano
Although Tata Motors avoided talking about the loss-making automobile’s future, after the corporation’s ousted chairman stated there were emotional factors for not closing down production.
Automaker provided the declaration to the stock market late Friday after an internal letter by ousted chairman Cyrus Mistry stated the expense of Nano’s production was constantly higher than its 100,000 rupees ($ 1,497) cost and the task had to be closed down if the business wished to remain profitable.
Mistry was sacked in a conference room coup recently with group head Ratan Tata taking control of the reins as interim chair of Tata Sons. A bitter public fight has since emerged between the two sides, raising potential of a legal fight.
The Nano’s concept got international interest for its cost effective prices however a modification in its production place and the understanding of a cheap car hurt production and sales, Tata Motors stated in the declaration.
Mistry’s leaked letter, was dealt to the Tata Sons directors on October 25, stated emotional factors were keeping Tata Motors far from closing down the Nano’s production.
Nano sales decreased more than three-fifths to 4,459 automobiles in the in the 6 months of the starting April 2016.
The automaker had crossed out some expenses connected with the Nano, it stated.
Tata Motors likewise stated financial investments in the Nano factory could be utilized for making other items which the business would concentrate on “growing and appealing sections of the traveler vehicle market.”
The automaker rejected Mistry’s allegation of aggressive accounting for product development costs and stated it followed basic norms which provide a reasonable and real picture of its monetary health.