Saturday, October 04, 2008

Tata abandons cheapest car plant...

India's Tata group has abandoned plans to build the world's cheapest car in the eastern state of West Bengal. 

Tata group chief Ratan Tata said: "We have little choice but to move out of Bengal. We cannot run a factory with police around all the time." 

He was speaking after protests in a row over land acquired from local farmers. 

The car, the Nano, is expected to cost about 100,000 rupees ($2,130). It was due to be launched in October and will be ready "this year", Mr Tata said.

The BBC's Subir Bhuamik in Calcutta says the company is initially expected to produce several thousand Nanos this year at other sites in India. 

It had planned to make 250,000 cars a year at the Singur plant in West Bengal, rising to 350,000. 

A number of other car firms also plan vehicles to compete with the Nano but have not yet begun production. 

The dispute in West Bengal highlights a wider problem between India's growing industry - which needs land - and its farmers who are unwilling to give it up. More...

See also:

No comments:

Post a Comment