No sight of profit from Ratan Tata's dream 'Nano Car' project: Mistry
New Delhi: Making a staggering revelation after being removed as the Chairman of Tata Sons, Cyrus Pallonji Mistry on Wednesday said that Ratan Tata's dream project - the 'Nano Car', has been a sheer loss affair but it is running "out of emotions".
Cyrus said that a decision to shut down the project should have been taken but there are "emotional reasons that kept us away from taking this crucial call".
In a letter to the board members and the Tata Trustees, Cyrus revealed that cost of manufacturing a Nano car was always above the price of the concept car of Rs 1 Lakh.
What else Cyrus Mistry said?
- Ratan Tata's dream 'Nano Car' project has consistently lost money.
- The losses now amount to Rs 1000 crore.
- There is no line of sight to profitability in the Nano project.
- The only thing company can do is "shutting it down".
Cyrus also gives a reason why Tata was bound to run the project despite losses:
- Stopping Nano would have also stopped the supply of the Nano gliders to an entity that makes electric cars in which Mr Tata has a stake.
Meanwhile, Ratan Tata takes the position of interim chairman of Tata Sons after Mistry was shown doors on Monday.