Sales of Tata Motors' Nano dropped to 6,017 units in the April-July period from 27,625 units sold in the same period during 2012, the Hindustan Times reported. Sales even failed to meet the company's monthly target of 20,000 units.

In a bid to revive the car's sales, Tata Motors plans to enhance the vehicle with start-stop technology, power steering, a diesel engine and a bi-fuel CNG/petrol engine.

VG Ramakrishnan, global co-leader, auto practice, Frost & Sullivan, said, "Nano's positioning as a cheap car put off customers. The current repositioning will help. However, a lot more needs to be done to achieve a cult status as a city car for youth."

However, another auto analyst, Surjit Arora from the broking house Prabhudas Liladhar, does not expect the upgrade to lead to a significant increase in sales.

He said: "From the current 1,000-1,500 sales may go up to 3,000-3,500 units. I don't expect a spectacular increase beyond this".