Ratan Tata had grand plans for Nano – ones that included getting the car to run on a compressed air & batteries!
Ratan Tata had grand plans for Nano – ones that included getting a car to run on compressed air & batteries! According to the report in HT, Ratan Tata had a big turnaround plan for the Nano, which did not materialize because he (Tata) handed over the reins to the Cyrus Mistry back in 2012. Nano, touted as the cheapest car in a world, is Ratan Tata’s dream project. Though, the car’s sales had dropped by as much as 70% over a past six years.
For More Automobiles: Click Here
Sources in Tata Motors told the paper that a lot of research had been done on a development of a new Nano platform that would enable the car to run on a compressed air, and an electric & hybrid varieties. According to report, Tata Motors had been working with the Motor Development International from France, for the 7-year project. This collaboration was mean for ‘air car’. Ratan Tata also wanted to make a feature-rich Nano, especially for a Latin America & Europe.
Cyrus Mistry says that he was reduced to a “lame-duck” chairman: Full text of his letter to the Tata Sons Board
But, Cyrus Mistry saw only losses in the overall Nano project, as is the evident from the letter that he wrote to Tata Sons Board, soon after his sacking. Blaming that Ratan Tata of keeping the Nano project alive, only for an emotional reasons, taking about the automobiles, Cyrus Mistry said that there was no sight of profitability when it came to that car. “The cheapest car in the world Nano product development concept called for a car below Rs. 1 lakh, but the costs were always was above for Nano sales. This product has consistently lost money, peaking at the Rs. 1,000 crores. As there is no line of sight to the profitability for a Nano auto, any reversal strategy for the company requires to shut it down,” Mistry wrote. ” Emotional reasons alone have kept us away from this crucial decision. Another challenge in shutting down of Nano is that it would stop the supply of Nano gliders to an entity that makes electric cars and in which Mr. Tata has a stake,” he alleged.
Mistry has said that as a group chairman, he tried to turn things around – be it from Nano to an ultra-mega-power plant. Mistry has hit out at Ratan Tata, his predecessor, for an interference. Mistry has lamented that Ratan Tata’s interference had increased to an extent that he (Mistry) was reduced to being a ‘lame-duck’ chairman. In one of the biggest upheavals in a corporate sector, the Tata Sons Board on Monday appointed as Ratan Tata an interim chairman of the group, replacing Cyrus Mistry. The Board has constituted a Selection Committee to choose a new Chairman.