Tata Motors (TAMO.BO), India's largest vehicles maker, is planning to ramp up production of its Nano, billed as the world's cheapest car, by a fifth this month, a senior official said on Wednesday.

In the last three months, we have been averaging about 2,500 Nano's 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.

The sales will be more than 3,000 per month after the increase, he said. (Reporting by Janaki Krishnan)