Come 2011, the Nano may be available for sale in the open market. The

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move comes as Tata Motors has advanced the delivery of Nano to 1.03 lakh original retainees who had agreed to keep the booking amount on India’s cheapest car with the Tata group flagship.

When contacted, Debasis Ray, head – corporate communications, Tata Motors told Financial Chronicle that the company is making all efforts to deliver the car as early as possible to the customers. The company has been delivering Nanos since July 2009 to the original one-lakh allottees who were given a price protection guarantee.

Ray further said, “the company will making an announcement on availability of Nano in the open market in due course.” On May 4, 2009, Tata Motors had said, “deliveries will start in July 2009, and are expected to be completed in the last quarter of 2010.” However, the retainees will have to shell out around Rs 5,000-7,000 more than the original allottees, due to rise in cost of the inputs used in making the Nano. “Despite a steep increase in input prices, the Tata Nanos are being priced only three to four per cent higher, than the price announced at launch. The terms and conditions of booking had provided that the applicable price of the car for a retainee-customer would be notified at the time of delivery,” the statement added.

“As a gesture of goodwill and gratitude, the company has announced a choice between a one-year free annual maintenance contract or free accessories worth Rs 4,000 or an extended warranty, to retainees,” Tata Motors said in a statement issued on Friday. “With the Sanand plant becoming operational ahead of schedule, the company will speedily ramp up production of the Tata Nano. Accordingly, the company has begun intimating retainee-customers that their cars are coming up for delivery. This is the final step, before the company opens up sales of the Tata Nano,” the statement added.

The company has delivered over 45,000 units of the ‘people’s car’ till date. The Sanand plant in Ahmedabad has the capacity to produce 2.5 lakh Nano’s per year and can be expanded to 3.5 lakh units per year in the later stage. Tata Motors is also manufacturing around 60,000 Nanos per year at its Pantnagar plant.

Tata Motors had received 2.03 lakh bookings for Tata Nano (after its launch on March 23, 2009) during the April 9, 2009 to April 25, 2009. The company later selected around one lakh customers through computerized random selection.