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NEW DELHI: Faced with declining sales, Tata Motors announced today a period of four years or 60,000 km manufacturer’s warranty in its small car Nano in a bid to attract more customers.

Improve the previous guarantee of 18 months or 24,000 miles, above, announced in March last year, the company said the new offer will no additional cost.

“The Tata Nano now comes with a 4-year/60, 000 km (whichever comes first) the manufacturer’s warranty at no additional cost. Besides being applicable to new supplies, the guarantee extends to all existing owners car, “the company said in a statement.

The company said that all new customers Nano will have the option to serve a “full maintenance contract” to Rs 99 per month.

Since the sale of 9,000 units in July, Nano deliveries fell in all months and hit a low of 509 in November. Sporadic incidents of small cars on fire has made it difficult for the company to boost sales Nanos, despite a series of initiatives guarantees through various campaigns.

Tata Motors earlier this month had asked the buyers to bring back Nano their cars to add security devices free of charge to prevent the vehicle catching fire, but insisted that there was a memory.

Even after posting 85 percent drop in sales to just 509 in November this year, Tata Motors said that deliveries were “greatly increased in the first five states of open sales.”

“Studies of customer satisfaction with the current owners Tata Nano indicate that over 80 percent are satisfied or very satisfied with the car because it is small but spacious, performance, handling, durability, mileage and safety” said Tata Motors.

In August, the sixth Nano catches fire incident since it was launched National Capital reported, three months after a probe of the company declared the car was “absolutely safe.” Five previous incidents occurred throughout the country, including Mumbai, Lucknow, Delhi and near Vadodara in Gujarat.

After increasing production at its plant in Sanand, the company began opening the reserves in many places like Kerala, Karnataka, Maharashtra, Uttar Pradesh and West Bengal. However, due to rising input costs that raised prices twice a Nano for customers outside of the platform. To date he has delivered over 71,000 units.

order to make up with the crash in sales and to regain its customer’s confidence. Tata Nano is offering a four-year manufacturers warranty. The move after the sales of the Nano dropped for the last four months though the economy of car sales in India has grown at nearly 9 percent annually. The world’s cheapest car been bruised by a series of fire incidents has sputtered to just 509 units in November a contrast to the 9,000 it delivered in July.

In 2009, when Tata Nano was given a striking coverage by media, the small car had orders for more than 200,000 Nanos but due to problems like production delays and fire accidents the car sales have gradually come down. While the rival cars like the Maruti Suzuki Alto have overtaken Tata Nano with sales more than 30,000 in November, making it India’s best-selling car last month.

Under a new ‘Nano Happiness Guarantee’ scheme, Tata Nano has planned to double warranty lengths for four years or 60,000 km and introduced a Rs 99-a-month maintenance option to control running costs. The auto major was previously offering a warranty for 18 months or 24,000 km, with no maintenance on the car which cost Rs 1.23 lakh for the base model.

With Analysts feeling as safety issues being the prime reason for drop down in sales, Tata Motors has attributed its decline in sales to its inaccessibility to reach smaller towns. However, according Tata Motors, these new schemes will help attract the first time buyers and get an emotional connect’ with the customers, said a senior official of the company. The company is setting up special Tata Nano access points for customers in the hinterlands to experience and test-drive the car. Through these reach-out initiatives, coupled with customer benefits, Tata Motors will cover the entire country with open sales by March 2011.