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The Tata Nano may be the most expensive vehicle ever to be the cheapest new car on earth. Violent protests at one of the car’s planned assembly sites have gotten so rampant that the Indian automaker is near a deal to exit the nearly completed West Bengal facility all together. Just a few days after a supplier CEO was killed by a mob of protesters, two body guards were also assaulted at the contentious facility. The controversy in West Bengal centers around the land that local farmers lost to the $200 million Euro facility, and with the building nearly complete, it’s hard to believe that land will be returned any time soon even if Tata did abandon the region.

Word out of India is that the state of Karnataka has offered Tata Motors 1,000 acres plus incentives to move Nano production there, and the local media is reporting that Tata is going to announce plans as early as next week. We’re not in the micro car business, but if we were, we’d avoid building them where there is the constant threat of being beaten or killed by an angry mob. Moving Nano production to a region that actually wants the Tata there seems like a foregone conclusion at this point.

Tata’s cut-price Nano budget car isn’t even on the market, and already the Indian automaker is planning its successor. In an interview with German magazine Focus, Tata’s Girish Wagh revealed that the second-generation Nano will be developed in four years from now and designed for an assault on the European market.

In order to market in Europe, the next Nano will need to comply with the stringent Euro 5 emissions and safety standards, and Tata will target three liters per 100km, down from the current Nano’s already tiny-sipping 5L/km. Before the next Nano is ready for the European market, Tata will focus on its domestic market for two-three years, after which it will look at expanding into Africa, Latin America and Southeast Asia. As we reported earlier, Tata plans to avail itself of Fiat’s dealer network in exchange for Jaguar-derived platforms for the upcoming Alfa Romeo 169 sedan.

The Tata Nano, which will be the world’s least expensive car, has already exacted enormous sums of money and time. A dispute over the location of a new factory has cost Tata close to a year of court wrangling and might end up spoiling a £200 million investment. Now the efforts to build the Nano have cost a life.

Unhappy workers were invited to a meeting with Indian and Italian executives of Cerlikon-Graziano Transmissions, which makes auto parts, to discuss reinstatement. Only a few workers were in the meeting, but more than a hundred were waiting outside. When those outside heard someone inside call for help, they rushed in, and in a mob fog anger, bludgeoned the company’s operations head, Lalit Kishore Choudhary, to death.

It was later reported that some of the folks involved in the melee weren’t even employees of the company. What Tata will need to urgently figure out is where it needs to go — inside or outside of India — to build the Nano without backlash. In the mean time, our condolences go to the Choudhary family. Thanks to all who tipped in.

Countries like China and India are a hotbed for the auto industry, and every major automaker is looking to improve its standing in the emerging markets while they’re still on the ground floor. Low-cost micro cars are all the rage in the East, and Nissan/Renault is looking into getting a piece of that action by producing a Nano fighter. Nissan Motor India Director Neeraj Garg told The Times of India that while higher priced sedans and SUVs are also scheduled for India’s booming auto market, a low-priced hatch is also on the wishlist if the pricing is right.

Company officials say that the low-cost transportation could be among six new products scheduled for India by 2012, and with the country’s low-cost labor, Nissan/Renault could also export any vehicles it makes there.

Toyota has been working on an affordable small car that will be cost-competitive in emerging markets, and Autocar is reporting that India is being considered as a destination for production. India makes sense due to its low-cost labor, and with competitors like the Tata Nano going for as little as $2,500, the world’s biggest automaker will need to cut cost everywhere it can. There is no word as to exactly what vehicle would be produced in India, but one option is Toyota’s production iQ from Geneva, which is scheduled to begin production later in 2008. Toyota is looking for initial sales of the iQ to crest 100,000 units.
[Source: Autocar via Winding Road]

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