The protests are in reaction to Tata Motors' purchase of farmland to build the plant. Along with rapidly rising materials costs, the protests have caused delays and price rises that are making the Nano's launch a difficult and possibly lengthy process, reports Automotive News. Choosing to move the plan would be grounded in human, rather than financial, concerns, however.
"What has concerned us is the violence, the disruptions, that has led us to be concerned about the safety of our employees, our equipment and investment, and of the viability of the process," said Tata Group Chairman Ratan Tata.
The decision to scrap its plant and move is a tough one, but may in the end prove less costly than continuing on in a community where the company is not wanted. As yet, however, there is no 'plan B' for production of the Nano. Eventually more plants are planned join the initial location at Singur, but production was expected to start there at about 250,000 units annually before adding more capacity.