Tata Motors' Ranjangaon plant in Maharashtra, which earlier used to manufacture Bolt and Zest, will shift its focus to the newly-launched compact SUV, Nexon.
Tata Motors’ Ranjangaon plant in Maharashtra, which earlier used to manufacture Bolt and Zest, will shift its focus to the newly-launched compact SUV, Nexon, in a bid to catch up with the company’s established competitors in the compact SUV segment – the Ford Ecosport and the Maruti Vitara Brezza. The company is planning to allot the plant’s 50,000 units of annual installed capacity to Nexon.
Tata Motors is a late entrant in the compact SUV segment, which is also one of the fastest-growing segments in the passenger vehicle space. Compact SUVs comprise almost 12% of the total domestic passenger vehicles market.
Nexon will be launched at an introductory price starting at Rs 5.85 lakh (ex-showroom Delhi), which is very aggressive compared to the market leader in the segment, Vitara Brezza, which costs Rs 1 lakh more
Meanwhile, production of Bolt and Zest will continue from the company’s Pimpri Chinchwad plant near Pune. Nexon, Bolt and Zest are being manufactured on the auto major’s X1 platform. The annual capacity for Tata Motors’ passenger vehicles is more than 5 lakh units across its three manufacturing plants in Pune, Sanand and Ranjangaon. Tata Motors currently owns the Ranjangaon plant in a 50:50 joint venture with Fiat Chrysler Automobiles. A Tata spokesperson said,
“The assembly line has an annual capacity of 1 lakh cars, of which 50% is reserved for Tata Motors.” The new SUV is the fourth model to be launched in the last two years by Tata Motors and will help the company increase its addressable passenger vehicles market to 71% from 59% earlier. It will be targeted towards millennial and family car buyers.
By Deepak Kumar