Tata will be offering a four-year warranty on the Nano, available to existing customers as well as new ones.

The warranty may have been prompted by recent safety concerns, with at least seven cases of Nanos catching fire having been reported. This also resulted in the release of a safety upgrade to prevent future fires, although Tata says the fires are caused by the installation of foreign electrical equipment or the presence of foreign material on the exhaust system.

However, sales may also be involved in this decision. The Tata Nano is reporting catastrophically low sales figures, with just 509 sold in November, despite a booming Indian automotive market.

Source: Automotive News – sub. req.