Tata Motors introduced the world’s cheapest car at the Delhi Auto Expo in 2008. The model finally hit the Indian roads in July 2009 and Indian customers have queued up making an endless wait for the car. However, production issues have slowed the demand for the car. Customers are now willing to buy a more expensive car than to wait for weeks or even months for Nano. About 15 percent of Nano customers have cancelled their bookings and customers are opting for ready options in the market.

“There are other new cars in the market for which people don’t have to wait,” stated one Tata dealer. “People don’t mind shelling out a bit more to get their car immediately,” he added. Tata Motors begins full swing production of the model by March 2010 when its mother plant in Sanand, Gujarat will be ready.

On the other hand, Tata Motors has stated that existing bookings of Nano customers will be delivered at the current prices notwithstanding the rising input costs. "The current bookings will be executed at the price already committed and we have a long way to finish the current bookings. So, it is too early to talk about raising the prices of the Nano," Tata Motors managing director Prakash M Telang. Tata Motors would deliver the first one lakh cars by March 2010, while the remaining bookings of 55,021 will be delivered in the next phase.