Tata Nano fallouts top 15 percent

The $2,500 Tata Nano generated plenty of interest when it first hit dealers in March, but production issues have slowed demand for the tiny city car. Customers have been forced to wait weeks to take delivery of the Nano, with many opting to take their business to competing nameplates.

According to the Hindustan Times, about 15 percent of Nano customers have cancelled their orders for the small city car. Production problems have slowed deliveries of the Nano, with many customers deciding to purchase slightly more expensive alternative rather than wait for weeks for the Nano.

"There are other new cars in the market for which people don't have to wait," one Tata dealer told the Hindustan Times. "People don't mind shelling out a bit more to get their car immediately."

Production of the Nano was delayed in 2008 as land disputes forced Tata relocate the Nano factory from West Bengal to Gujarat. Production has slowly ramped up since July, allowing for about 3,000 monthly sales. Production of the Nano at the Gujarat plant will eventually total 300,000 units annually.