Tata Nano Sales Fall Short in November

Tata reported dismal sales of its Nano microcar in India for the month of November. The figures are down 85 percent compared to the same month last year. This is partly due to concerns over lack of safety and the availability of finance, but mostly to production problems caused by the relocation to a new plant.

Only 509 Nanos were sold in the month, the lowest level since its launch as the world's cheapest car. Customers have shown concerns following a series of fires affecting the models, despite the fact that the carmaker is offering free safety upgrades.

This is the forth straight month of falling sales from the high of 9,000 cars in July this year. Fortune Equity Brokers told Agence France Presse that quality perception over safety of the car could be a concern. Over 71,300 units of the car have been sold since its launch in July last year. Tata Motors is working with Indian financial companies in order to ensure future buyers more convenient funding.

Last month the Indian carmaker started offering free safety upgrades for the Nano to assure more than 70,000 owners in India that there are no generic defects in the car. Although the company is calling it an upgrade, not a recall, a number of safety features have been added to the exhaust and electrical system. There have been a number of fires reported that involved the vehicle, into which the company is launching an official investigation.

The aforementioned supply problems have been caused by production being moved to a new factory in Sanand, northwestern Gujarat.