Protests halt production of world's cheapest car

Launch delayed by violence in India

11 August 2008 13:46 GMT / By Katie Scott

The company behind what is mooted will be the world's cheapest car is facing production delays because of opposition to the building of its factory.

Tata Motors unveiled the Nano in January, and claimed it will have a price tag of just 100,000-rupee (£1238 or $2380).

However, production is now facing massive delays due to local opposition to the expansion of the Tata factory in Singur in India.

Reuters is reporting thay West Bengal's communist government took about 1000 acres of farmers' land for the factory.

The state offered compensation in return, but some are complaining they did not receive the money that they were promised.

Others declined compensation, because they want to keep their land.

In all, around 400 acres of seized land are still being fiercely disputed, threatening the planned October launch of the Nano.

Tata Motors recently completed the acquisition of Jaguar and Land Rover for $2.3 billion.

No word as yet if the car when completed will make it to the UK.

We will keep you posted.