Tata to offer 4-year warranty on Nano

[NINETY EIGHT REGENCY]

Tata to offer 4-year warranty on Nano

Safety fears after several models catch fire

Automotive News Europe -- December 9, 2010 08:16 CET

MUMBAI (Reuters) -- India's Tata Motors Ltd. will offer a four-year manufacturer's warranty on Nano cars. It's a perk that will be extended to all existing customers of the vehicle.

There have been concerns over the car's safety after several of them caught fire in the last year. Last month the company announced it would contact the 70,000 Nano owners to offer them the option of installing "additional safety protection in the exhaust system and the electrical system."

"We have noticed instances of additional foreign electrical equipment having been installed or foreign material left on the exhaust system," Tata said at the time.

Indian business daily newspaper The Economic Times reported last month that at least seven such incidents had been reported.

Sales of the Nano, launched by Tata Motors to much fanfare in March 2009 as the world's cheapest car, dropped to just 509 in November, an 85 percent reduction from a year earlier despite a surging Indian auto market.

The Nano was launched at $2,500 and targeted Indians wanting to upgrade from motorcycles.

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