Tata could be forced to move production of the Nano

The Tata Nano was going to be manufactured at the Singur plant, in West Bengal, but if the violent protests and demonstrations affecting it continue, since it was built on farmland, the Indian company will have to look for another site to produce it, which will be costly given the 350 million dollars already invested in the project.

If we add the price increases that construction raw materials are experiencing, it seems the Nano could end up more expensive than planned, and its manufacturing could be delayed for a while, which would make its launch more difficult.

According to Ratan Tata, chairman of the Tata Group, the decision will be based on human factors rather than economic ones, because they do not want the safety of their employees and of the plant’s equipment and machinery to be put at risk by the protests.

As hard as relocating the factory would be, in the long run it could turn out to be more profitable than staying at the original site, where it was not welcome and would have faced many problems. Alongside Singur, other plants will join in the future, although the plan was for production to start at 250,000 units a year in the first one.

Via | Motor Authority