After a summer selling record numbers, the Nano's sales plummeted to just 589 in November, following numerous reports that alleged that the cars were mysteriously bursting into flames. After the mysterious fires, Tata offered free extended warranties on the cars, up to 90 percent financing on easy terms, and a comprehensive maintenance plan at just 99 rupees a month (about $2.25).
The incentives seem to have struck a chord with buyers, and the Nano is right back where it was a year ago. Currently, Tata is building 9,000-10,000 cars a month at its Sanand, India plant, and had planned to increase that rate to 15,000 this fiscal year. In light of the sales spike, though, that number was bumped to 18,000 to 20,000 units a month.