Asia Bizz: Indian auto giant Tata Motors is reportedly planning another hit in India by increasing the capacity of its small car Nano. The company – which is known for creating the best strategies to boost sales –  might soon launch a new variant of the infamous car after taking a peek at the demand from tier I and tier II cities.

Asia Bizz sources said that Tata Motors is  planning to roll out the CNG variant of the vehicle, which is expected to be launched by the end of this fiscal year. It was also noted that the company might not come out with a diesel variant of the Nano before the year 2013.

Reports say that the production of the diesel Nano will begin by the end of the year 2012 and will be launched in 2013. The diesel Nano will cost 30% more than the petrol variant. The diesel variant of the model will come with a twin cylinder 700-800 cc DICOR and the engine will be first used in the Tata Ace.

Tata Motors is also planning to expand its network base from 130 to 300 by the end of this year.

Tata Nano became popular during its launch but then the downfall of its sales started due to many reasons.