When Nano was introduced people had gone crazy to buy one. The egg shaped Nano was like dream of every middle class family. But now sales of the Nano have been falling for the last four months. Its maker, Tata Motors, sold only 509.
Last year Tata had orders for more than 200,000 Nanos, which has a list price starting at about $2,900.
Tata has struggled with problems like production delays and fires in some of the cars, rival cars like the Maruti Suzuki Alto have overtaken the Nano. The Alto, which starts at $6,200 here, had sales of more than 30,000 in November.
Tata company announced that it would extend the warranty on the Nano, including those that have already been sold, to four years, from 18 months.
In an instance, a family was taking its new Nano home from a dealership in Mumbai when smoke started billowing from the back of the car. Soon, the entire car was engulfed in flames. There were no injuries except Nano.