
Update - Tata Motors has stated that it is not cutting production at Sanand manufacturing facility. Rather, it's increasing Sierra production. The automaker's spokesperson informed us that the rumours about the production cut at Sanand due to gas shortage are untrue.
A spokesperson from Tata Motors has stated the following,
The strong bookings and nationwide demand for the Tata Sierra is being addressed with rigor and agility. Since commencing deliveries in mid January, we have successfully dispatched and delivered over 14,000 Sierra vehicles as of February 2026 and are firmly on course to further accelerate deliveries. Production is steadily ramping up to scale volumes month on month and quarter on quarter. Our teams are working closely across manufacturing and the supplier ecosystem to progressively reduce the waiting period from booking to delivery, while ensuring the highest standards of quality and customer experience. Customers with bookings of the Tata Sierra will be kept periodically informed on their expected delivery timelines as we steadily progress towards fulfilling their Sierra ownership experience.

The Sanand manufacturing facility of Tata Motors is responsible for the production of the newly launched mid-size SUV Sierra and the sub-compact SUV Nexon. The facility was acquired by Tata Motors from Ford, which exited India a few years ago.

Tata Motors' Sanand manufacturing plant consumes 24,000 to 25,000 standard cubic meters of natural gas per day. Additionally, it also has a huge requirement for propane as well. The factory will soon start producing the electric version of the Sierra as well. The Sierra.EV is lined up for launch by the middle of 2026.
For those who may be wondering why automakers need natural gas, the answer is that natural gas and propane are used to heat the industrial ovens which are part of the automotive paint shop operations. These ovens that require natural gas and propane help in heating vehicle body panels, curing paint, and hardening protective finishes.
Making things even more difficult, the government of India has also placed restrictions on propane supply. Currently, a majority of propane is imported from the West Asian countries. This makes is particularly challenging for large factories that rely on West Asian supply of this critical natural resource.

Coming to the details of the Tata Motors manufacturing facility in Sanand, Gujarat, the company has two manufacturing plants in Sanand. In total, there are four production lines, and the combined manufacturing capacity of these two plants is around 4,50,000 cars per year, which can be scaled up to 6,00,000.
Plant 1 of the Tata Motors Sanand facility has two production lines and manufactures the Tata Tiago and Tigor. Meanwhile, the other production line manufactures the Tata Nexon, and the newly launched Tata Sierra. Additionally, these production lines also produce electric variants of the Nexon.

Apart from the Sanand, Gujarat, manufacturing plants, Tata Motors also operates a plant in Pune, Maharashtra. The Pune facility is capable of producing 4,00,000 vehicles every year. Also, Tata Motors is has just built a new manufacturing facility in Tamil Nadu as well, which will have an annual capacity of around 2,50,000 vehicles.
The Tamilnadu factory will produce high-end cars such as Jaguars and Land Rovers, and could eventually produce the upcoming Tata Avinya electric luxury SUV as well. Production of the Range Rover Evoque has already commenced at the Tamilnadu factory.