Tata Motors says that with its 250,000-unit per year Sanand plant becoming operational ahead of schedule, the company will ramp up production of the Tata Nano although it will increase prices by up to 4%.

Retainee customers are being informed of delivery. This is the final step Tata noted, before the company opens up sales of the Nano.

Retainee-customers are those who had kept their booking with the company though not selected among the first allottee-customers from the booking process of 2009.

A Tata statement noted: "Despite a steep increase in input prices, Nanos are being priced only 3%-4% higher, depending on the model, 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 so-called allottee-customers still awaiting delivery, will receive their cars at the same price as announced at launch on 23 March.

And, given the length of time it has taken for delivery, Tata added it would offer customers either a one-year annual maintenance contract or what it terms "free accessories" worth IRS4,000 ($85).

"The Tata Nano has already received an overwhelming response," added Tata Motors. "With the ramp-up at the Sanand plant, customers will soon be able to freely purchase the Tata Nano."