After meeting the initial order of one lakh Nanos and opening further sales, Tata Motors is now looking to tap demand for the ‘People's Car' from smaller towns across the country.

The automaker is in the process of setting up exclusive outlets for the Nano across various small towns across the country and has already started identifying dealers. This is similar to the strategy adopted for the Ace light commercial vehicle or mini-truck, which the company retails through about 600 single product dealerships.

“We will be setting up special Nano Access Points for smaller towns across the country. This will be on a similar model to what had been done for the Ace minitruck,” a top company official said, without mentioning the total number of new outlets planned.

Heralded as the saviour for the millions looking for affordable personal transportation, the Rs 1.49 lakh (starting price) Nano has seen its monthly sales climbing back to 8,707 units in March this year, after a sharp dip in November (509 units). Peak sales were in July 2010 at 9,000 units.

The addition of new markets follows the company's plans to utilise the full capacity at its Nano-only 2.5 lakh annual capacity plant at Sanand, Gujarat. Within this fiscal, monthly production of the small car is expected to touch 18,000-20,000 units, from the current 9,000-10,000 units.

To boost sales after three separate incidents of fire in the small car, the company had also announced schemes such as a free four-year/60,000 km extended warranty, a comprehensive maintenance contract for new buyers at Rs 99 per month. Tata Motors Finance also offers 90 per cent finance for the Nano at easy rates.

Tata Motors is also reported to be planning the launch of other variants of the car, such as a diesel-powered Nano and one fitted with automatic transmission. It has also tied up with Future Group's retail chain, Big Bazaar, to sell the car through its supermarkets.

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