Tata Motors Passenger Vehicles Ltd.

The revival in sales of the Nano in the last four months has encouraged Tata Motors to double production plans for the small car by up to 20,000 units a month this fiscal. In March, the Nano sold 8,707 units, nearing its all-time peak of 9,000 units sold in July last year.

Though the Sanand plant currently produces 9,000-10,000 units a month, its annual installed capacity is of 2.5 lakh units. After the bad publicity that followed the fire incidents, Tata Motors, to instill confidence in customers, announced schemes including offering a free four-year/60,000-km extended warranty and a comprehensive maintenance contract for new buyers at Rs 99 a month. Tata Motors Finance also promised up to 90 per cent finance for the Nano at easy rates. Volumes for the compact have since picked up; in December 5,784 units were sold, in January 6,703, and February 8,262 units.

In a contrast, sales of the Indica range have been on a decline. Under pressure from growing competition in the A2 segment, the hatchback sold 6,937 units in March (down 40 per cent year-on-year) after selling 10,591 units in January. The Indica range, which includes petrol and diesel models on the new Vista platform, had seen volumes going down to 5,923 units in December.