MUMBAI (Bloomberg) -- Tata Motors Ltd. said that one of its $2,500 Nano models caught fire in New Delhi, at least the third reported case in India this year involving the world's cheapest car.
“We will investigate the incident,” Tata spokesman Debasis Ray said Friday, declining to specify a possible cause. He said following the two earlier fires, the Nano had undergone a thorough check and the investigating team had concluded that the car is absolutely safe.
Tata has sold more than 50,000 Nanos since the company began deliveries of the car in July 2009. A 20-member internal team and an independent forensic expert found that one previous fire involved a foreign object igniting while in contact with a hot exhaust system,
while the other showed evidence of a ruptured fuel line, Tata said on May 21.
A subsequent program to inspect all the Nano cars already sold was “to allay concerns by owners,” Tata said at the time, saying the project was not a recall.
Tata opened a dedicated plant in June to build the Nano. Tata raised the car's prices by as much as 4 percent last month.