Nano production at Tata Motor's Sanand plant will rise to 20,000 units per month as the Indian manufacturer looks to capitalise on the popularity of the model.

News of Tata's increased Nano capacity comes on top of the automaker's decision last month to increase prices of the vehicle by up to 4%.

"At the Sanand plant, our annual capacity is 250,000 and we have said consistently we are ramping up capacity as speedily as possible," a Tata Motors spokesman in Mumbai told just-auto.

"We expect by the end of the financial year [next March] we expect around 20,000 per month - that would be approaching full capacity. It would be in the main [for] the local market."

Reports indicate Tata sold nearly 15,000 Nanos in the first fiscal quarter and has plans to recruit 1,000 engineers in the future to meet demand.