Billed as the world's cheapest car, current production will be increased by roughly 500 units per month or 20 per cent more.
Currently Tata Motors has averages around 2500 Nano's per month which certainly doesn't seem like much, especially considering the minute price tag.
"In the last three months, we have been averaging about 2,500 Nano (sales) per month," Rajiv Dube, head of the company's passenger car business, told reporters."We are gearing up for a higher number and we are ramping up our production capacity by 20 percent from this month."
Sales of the Tato Nano will total more than 3000 per month after the increase, said Mr Dube.