Tata Motor's Nano sales rebounded in December, after tata's offered better financing and extended warranties.Sales has risen significantly to 5,784 from 509 in November, according statement from the Mumbai-based automaker. The December tally, a 60 percent increase from a year earlier, was below the 9,000 monthly sales record achieved in July.
Nano advertisements, added more sales points in smaller towns and introduced a 99 rupee ($2)-a- month maintenance option to help revive sales of the Nano, which costs as little as 137,555 rupees in New Delhi. Sales had fallen on a month-on-month basis since July because of price increases and safety concerns following at least three fires.
The automaker in December lengthened warranties to four years or 60,000 kilometers (37,282 miles) and added the maintenance plan. The company opened a factory in June with the capacity to build 250,000 Nanos a year.
Tata’s total vehicle sales, including trucks and buses, rose 31 percent from a year earlier in December to 67,441, according to the statement.
The company separately raised prices for some passenger- vehicle models and all commercial vehicles from Jan. 1 because of higher costs. Prices for Indica and Indigo cars rose by as much as 15,000 rupees, the automaker said in a separate statement. Commercial-vehicle prices went up by as much as 30,000 rupees. Nano prices didn’t change.
Tata in November said it would retrofit Nanos with additional protection in exhaust and electrical systems after the fires. Investigations concluded that the reasons for the fires were “specific” to the cars involved, the company has said.
The Nano is currently sold in 12 Indian states as the company works through initial orders and ramps up production. Tata expects to begin nationwide sales by March.