Auto analysts and business analysts in India fear that Tata Nano may face booking cancellations after the first round of lottery winners is announced. Tata Nano has received about 203,000 bookings for its models but the company has capacity to manufacture on 50,000 cars from its Uttrakhand plant in Pantnagar. The mother plant in Sanand will be completed early next year and is expected to become fully operational by first quarter of 2010.
The lottery will be completed by the end of the next month when names of first one lakh lucky Nano owners will be announced. Tata Motors will start deliveries from July 2009 and will be able to deliver only 50,000 cars by end of December 2009.
“Bookings beat expectations but the company may not be able to retain orders going ahead,” said Mahantesh Sabarad, an analyst at Centrum Broking in Mumbai. Further the analysts also expect that the pricing is not competitive and expected that nearly one-third of outstanding bookings may be cancelled after the lottery.