A brand new Tata Nano purchased by a Mumbai resident, Satish Sawant caught fire when he was taking it home from the showroom.

Satish cannot drive so the showroom had provided him with a driver when a biker asked him to look at the rear of the car which was in flames.

"We are still trying to understand why this happened and what the reasons behind the incident were," said a spokesperson for Tata motors. The accident was described as a "stray one".

Asked if the fire accident could be linked to earlier break out of fire in Nano, the spokesperson said, "The earlier cases of smoke and fire were due to a faulty switch in the car's steering column."

The company is trying to find out the cause of the fire and only then it will be able to tell if it a generic fault or not, added the spokesperson.