• New York Times, Friday, December 10, 2010 10:25 AM

Having sold just 500 of the egg-shaped Tata Nano in November -- compared to the 9,000 delivered in July -- the company on Thursday announced it would extend the car's warranty (including those already sold) to four years, from 18 months.

As Tata has been bedeviled with production delays and fires in some Nanos, rivals like the Maruti Suzuki Alto have gained an edge. The Alto, retailing at $6,200 in India, is now the best-selling car there.

The Nano's celebrated 2009 rollout had prompted other big automakers to propose ultracheap people's cars of their own. But Nano's stall-out could put a damper on plans to see goods and services sold to people of modest means.

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