Nano bookings might be cancelled: experts

Automobile industry experts feared that a good number of Nano bookings might cancel due to the production problem. It is to be recalled that Tata Motors promised to allot only 50,000 cars this year to the winners of lottery as it is the maximum capacity of its existing plant. So as a result a large number of customers have to wait for atleast for a year. The company has received 203,000 fully paid orders for the world's cheapest car Nano. Mahantesh Sabarad, an analyst at Centrum Broking in Mumbai said that ,however, bookings exceed expectations but the company might not be able to retain orders going ahead. Now it is strongly feared that unsuccessful customers in the ballot can either cancel their order or leave the cash advance they paid with the company to earn 8.5 percent interest for the first year. But experts said the rate was not competitive and expected between a third and half of the outstanding orders after the lottery to be cancelled.

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