Tata was not messing around when it said that the protests at the Nano plant may make it go elsewhere. Yesterday Tata announced that is was stopping construction on the plant in Singur, a farming community in West Bengal state in India. The company said in a statement, “This decision was taken in order to ensure the safety of its employees and contract labor, who have continued to be violently obstructed from reporting to work.” The center of the problem is the 400 acres of farmland that was taken for the factory grounds, and the farmers that want it back. This represents a large setback to the world’s cheapest car considering the plant construction was near completion and employed about 4,000 people so far.
Now the Nano is now shopping for a new home. There is no word on how this setback will effect production schedules or possibly the price of the $2,500 car.