The new car will be offered at an introductory price of Rs 3.48 lakh to Rs 5.91 lakh (ex-showroom ,Delhi) and replace the existing model in the market.
According to a report by JD Power, Nano will replace Hyundai's i10, which is slated to take the second position in 2010 after Maruti Suzuki's Alto.
The company's wholly-owned subsidiary BMW India has a manufacturing facility in Chennai, with an installed annual production capacity of 3,000 units.
Tata Motors is understood to be mulling a hike in the price of its passenger cars Indica and Indigo by a significant amount with effect from October 1.
Executive Vice-president Takeshi Uchiyamada said the company will introduce the new models in a bid to boost sales, by expanding its fleet of eco-friendly cars.
According to Society of Indian Automobile Manufacturers, domestic passenger car sales jumped to 1,60,794 units and motorcycle sales rose to 7,27,542 units in August.
Suzuki Motor Corp chairman Osamu Suzuki says the company would pump in Rs 1,925 crore to set up a third manufacturing plant at Manesar.
Two-wheeler manufacturer, Bajaj Auto, on Thursday said that it has clocked an all-time high monthly sales of 3,29,364 units in August, a 55 per cent jump over the same month last year.
The car maker reports its highest ever monthly sales at 1,04,791 units in August, registering 23.56 per cent jump over the year-ago period.
In an irony of sorts, the Tata Nano finally started rolling off the main assembly lines at Sanand in Gujarat on the same day-Wednesday, June 2-that its bête noire Mamata Banerjee won a stunning electoral victory in civic polls across West Bengal.