TATA NANO

Tata Motors, makers of the much delayed Nano small car, Tuesday said it has completed random selection of the first 100,000 applicants who would buy the vehicle in the first phase and that delivery will begin next month.

"Tata Motors once again places on record its gratitude to the people of India for according such a warm welcome to the Tata Nano, as also to all its preferred financiers, dealers and partner companies for their stupendous effort in helping the company launch the Tata Nano," the company said in a statement.

The selection was made through a random computerised process after bookings closed April 25.

About two lakh bookings, which began April 9, were made across Tata Motors dealerships and State Bank of India (SBI) branches. This was, however, much lower than what was expected.

The selected applicants will be contacted individually, the statement said, adding that delivery will begin next month and continue till the last quarter of 2010.

India's third largest passenger car maker said 55,021 applicants out of the 106,703 not selected in the first phase had exercised the option to retain their booking.

They will be given preferential allotment in the second phase.

Additionally, they will be entitled to an interest of 8.5 percent on the booking amount if the car is delivered within two years (June 23, 2011), and 8.75 percent after that date. The booking amounts of the unsuccessful applicants shall be returned, the statement added.

The company will also be offering the unsuccessful applicants "an exciting offer on the Tata Indica range", the statement read.