Tata Motors Ltd.’s 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 Saturday. The December tally, a 60 percent 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 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.
“Tata Motors is now focusing on the Nano because its reputation is riding on it,” said Umesh Karne, a Mumbai-based analyst with BRICS Securities Ltd., who has a ‘buy’ rating on the stock. “Measures such as easy financing and the maintenance offer have reassured customers.”