Fire up the engine has taken on a whole different meaning in India after three drivers reported that blazes started spontaneously in their Nanos, the world's cheapest car.

Tata Motors, maker of the Nano, which costs about £1,300, today ruled out a recall of the little runabout despite the fires, which started in the steering column.

The manufacturer of the car said a short circuit in the combination switch that controls the Nano’s headlights, windscreen wipers and indicators was thought to be responsible for the incidents, which have left Nano owners furious.

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Sunil Kumar Panwanda, the owner of a Nano that caught fire in Delhi, said that his daughter parked the car outside his home on Tuesday afternoon. Three hours later it was in flames.

“I had bought the car for my children and they are now terrified of driving it," he told a television news channel. “I want the company to refund my money and take back the vehicle.”

Ravindra Bhagat, another Nano owner whose car set alight in the city of Ahmedabad, said: “I bought the car because Ratan Tata [the head of Tata] drove and introduced it.

“I thought this small car will be convenient for daily use in the city. Now, I feel it is better to drive a big car. Even if I get a replacement, I will not accept it.”

Another fire was reported in the city of Lucknow. There were no reports of injury in any of the incidents. Tata today denied that there had been any fires in its cars, only "minor smoking" and "localised melting of some of fire retardant plastic parts".

A spokesman for Tata Motors, which also owns Jaguar and Land Rover in Britain, said it was considering carrying out “pre-emptive audit checks” on new Nanos to check the fault. It may also ask the owners of the 7,500 cars it has so far delivered to bring them in to be inspected. It denied that the car will have to be redesigned and said a recall would not be necessary.