Tata Motors has confirmed one of its cheap Nano cars caught fire on Wednesday as it was being driven to a dealer, reportedly the second such incident this year.
A Tata Motors spokesman told Reuters the company was investigating the problem.
“We are sure that it is not a design flaw. We are looking into it,” he said, adding that the Nano had complied with all safety requirements.
Last month a Nano was engulfed in flames in the western city of Mumbai minutes after it had been delivered to the customer, local media reports said.
Last week PM Telang, the managing director of Tata Motors’ domestic operations, told reporters the fire incident in Mumbai was being investigated.
“We are still investigating the cause of the fire,” he said.
Tata Motors started deliveries of the Nano in July last year and there are now over 30,000 on Indian roads, the report said.
Last year a few Nanos caught fire and the company said it had identified the problem as faulty ignition switches and was changing the vendor who had supplied the parts.
Tata plans to sell petrol-powered versions in Europe by next year and in the United States in the next three years.