Tata Motors extends Nano sales throughout India

Article by Christian Andrei, on January 9, 2011

Mumbai, India-based automaker Tata Motors Ltd. recently said that its Nano (the world's cheapest car) will be available through Tata's 874 outlets across India. The Nano went on sale nationwide after easier financing and lengthier warranties helped sales recover from a record low.

Nano sales had been limited to 12 states as Tata Motors worked to meet the initial orders and increased output at a new factory. The Nano costs as cheap as INR137,555 in New Delhi.

Its sales increased more than tenfold in December 2010 from a month earlier after the Nano’s television advertisements started airing and after Tata added more sales points in smaller towns and presented an INR99 ($2)-a- month maintenance option.

Due to price increases and safety issues after at least three fires, sales had fallen on a month-on-month basis since July 2010. Umesh Karne, an analyst with BRICS Securities Ltd., said that Tata Motors now focuses on the Nano because "its reputation is riding on it."

According to a Jan. 1 statement from Tata, sales in December 2010 rose to 5,784 from 509 in November 2010. The December 2010 tally, a 60 percent increase from a year earlier, was below the 9,000 monthly sales record achieved in July 2010.

In December 2010, Tata Motors extended the warranties to four years or 60,000 km (37,282 miles) and added the maintenance plan. Tata Motors also started offering as much as 90 percent financing on the Nano through unit Tata Motors Finance Ltd. [via autonews - sub. required]

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