The Tata Nano - that retails in India for around $2,500 - is under investigation by the company following reports from three owners of electrical fires.
According to The Times of India, the fires appear to be the result of an electrical short in the car's steering column. To date no injuries have occurred as a result of the defect with all three cases happening when the ignition switch was in the 'off' position.
Tata has inspected two of the three vehicles with the third expected to be looked at in the next few days. So far an official recall has not been announced.
“We do not believe that this is generic and we are not considering any recall. However, a pre-emptive check may be carried out on cars that are to be handed over or those that are with customers, purely as a precautionary measure,” a spokesman for Tata Motors said.
The news comes at a bad time for the Nano model as Tata prepares it for sale in other world markets. It is expected the Nano will be sold in Europe from early next decade before also heading to the US.