Geneva: With the prospect of demand outstripping its supply capabilities for its low-cost, ultra compact car Tata Nano, Tata Motors is mulling opportunities in licensed manufacturing if it is unable to meet demand independently.

Speaking to the Indian media at the 78th Geneva Motor Show that is presently underway, Tata Group chairman Ratan Tata said that every decision must be based on the demand for the car. "If we cannot meet it, we will look at licensed manufacturing," he said.

The company has, in the past, talked of a satellite manufacturing or franchisee model as a possibility, and is now reported to be considering licensing agreements with overseas manufacturers to expedite the process of launching the ultra-compact in foreign markets.

Besides shortening the timeline to launch of the Nano on foreign shores, licence manufacturing will also have implications in cost reductions related to sourcing and logistics.

The Nano, currently being showcased at the Geneva Motor Show, is identical to the right hand drive car unveiled at the Auto Expo in New Delhi in January.

Acccording to Ratan Tata the car will have to be redesigned for markets such as the US and Europe, adding that the timeline is still being worked out, as its primary focus is to meet demand in the Indian market.

He said that even in the overseas markets, the Nano would be positioned as an affordable car, with its key features remaining low-cost, and totally compliant with all the regulations of the land, and at a never-before price tag.

Tata Motors is also showcasing three other cars at at the 78th Motor show at Geneva - the new generation Indica, the new Safari DICOR 2.2 VTT and the Xenon.

The Nano made its debut at the Delhi Auto Expo in January 2008. Termed as the 'people's car', the Nano is designed with a family in mind, has a roomy passenger compartment with generous leg space and headroom. It can comfortably seat four persons. Four doors with high seating position make ingress and egress easy. (See also: Tata motors launches the Rs 1-lakh car, Nano)

The company plans to launch the Nano first in 2008 followed by the launch of the new generation Indica in the latter part of the year in the international markets. The Safari DICOR 2.2 VTT and the Xenon have just been introduced in selected markets.