Sales are far off the target of 25,000 cars a month, and the Nano plant, with an annual capacity 250,000 units, produces only 10,000 a month, according to R Ramakrishnan, business head of Tata Motors passenger cars.
To get sales on track, Tata has given the car a makeover, making it available in more colours, including "champagne gold" and "papaya orange," and sprucing up the interiors while keeping prices unchanged.
It has also offered a "Tata Nano Happiness Guarantee", which more than doubles the car's warranty to four years from 18 months, and throwing in a maintenance contract for just 99 rupees a month.
It is offering "fast-track" financing for buyers wanting loans to purchase the car -- with loan approvals in 48 hours. Also, buyers can put down just 15,000 rupees ($300) to drive a Nano out of the showroom.