The Indian car manufacturer, Tata Motors, worked really hard on the launch of Nano city car production. A lot of things have been done and now the project is going to collapse.

An assembly plant in the town of Singur, India, has been build with only one purpose: to make cheap $2,500 Nanos. The company had to purchase 600 acres of land and invest $350 million in the plant construction. But it appeared to be not a very fair deal. According to the local governors, the auto maker forced the farmers from their land and paid pennies for the acres, which don’t cover the real cost of the property.

People have been protesting against this project from the very beginning, demanding to return 400 acres back to the owners, but Tata Motors kept explaining how important it was to have this much land and keep parts suppliers close to the plant in order to produce the cheap cars.

The Nano production was supposed to launch in a few weeks, but on the very first day many of the 4,000 employees did not show up due to the threats from the protesting people. The traffic in the area has been snarled and many trucks with wood have been left on the highways. Almost all the work at the plant has been stopped.

If Tata Motors doesn’t come up with some good solution, they will have to give up the plant and the plans to build a cheap city car for the people of India.