Amid sagging sales, Tata offers 4-year warranty on Nano

In order to boost the sagging sales of its much-touted small car the Nano, Tata Motors today announced a four-year or 60,000 km manufacturer's warranty for existing as well as new customers.

In addition, all new buyers will have the option to avail of a comprehensive maintenance contract at only Rs99 a month. Besides, the company has also announced finance options up to 90 per cent at easy rates for the Nano.

Sales of the Nano, launched by Tata Motors to much fanfare in March 2009 as the world's cheapest car, sputtered to just 509 during November, an 85 per cent drop from the same period a year earlier, despite a surging Indian auto market.

Media reports of several new Nanos catching fire, difficulty for customers to get financing to purchase the cars, and rising costs have hurt sales of the Nano, which was launched at just above Rs1 lakh, and targeted Indians wanting to upgrade from motorcycles.

The drop in sales came during the month when the company had asked customers to bring back the 'people's car' to add safety devices to prevent it from catching fire. The company had insisted it was not a 'recall', and said that the addition of safety devices was optional.

Even during October this year, Nano failed to enthuse buyers and witnessed only 2 per cent growth compared to the same month year ago.