Tata Motors Ltd. recently said it will fast-track loans of up to 90 percent to the buyer of its Nano minicar through its vehicle financing arm Tata Motors Finance.
A Tata Motors statement said Tata Motors Finance will provide the loans within 48 hours against verifiable documents for Nano, which was deemed the world's cheapest small car at $2,500 at the time of its launch in April 2009.
The financing offer follows a clutch of benefits recently announced, including a four-year warranty on the Nano and a maintenance contract option for INR99 a month (about $2), amid plummeting sales.
Nano's sales in November 2010 dropped 85 percent from a year earlier to an all-time low of 509 units despite an expanding auto market, hurt by safety concerns following reports of some financing difficulties and spontaneous fires.
In December 2010, the India-based Tata Motors said financing had been an issue as car loan providers often rejected the profile of two-wheeler owners for car purchases.
The price of the Nano has also risen to about $3,342 for the base model, only $2,062 less than the base model of the Alto, India's best-selling minicar from market leader Maruti Suzuki. [via autonews - sub. required]