New Delhi: Tata Motors' sales of the Nano, the world's cheapest car, rebounded in December from a record low after the automaker more than doubled warranty lengths and offered easier financing terms.
Sales rose to 5,784 from 509 in November, according to a statement from the Mumbai-based automaker Friday. The December tally, a 60 per cent increase from a year earlier, was below the 9,000 monthly sales record achieved in July.
Tata has begun television advertisements, added more sales points in smaller towns and introduced a Rs99 (Dh8.13) a month maintenance option to help revive sales of the Nano, which costs as little as Rs137,555 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.
"Tata Motors is now foc-using on the Nano because its reputation is riding on it," said Umesh Karne, a Mumbai-based analyst with Brics Securities, who has a ‘buy' rating on the stock. "Measures such as easy financing and the maintenance offer have reassured customers."
Four years
The automaker in Dec-ember lengthened warranties to four years or 60,000 km 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 per cent from a year earlier in December to 67,441, according to the statement.
The automaker in Nov-ember said it would retrofit Nano cars 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.
Tata Motors rose 0.6 per cent to Rs1,308.35 in Mumbai trading on Thursday. The shares gained 65 per cent last year, the second-best performer in the benchmark Sensitive Index of the Bombay Stock Exchange.
The November sales tally was the lowest for the Nano since the 624-cc car went on sale in 2009. Ratan Tata, the automaker's chairman, decided to develop the car after seeing a family riding on a scooter.
The Nano is sold in 12 Indian states as the company works through initial orders and ramps up production. Tata expects to begin nationwide sales by March.
