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.
Fueling speculation that the Tata protests last week may have been much more effective than originally reported, India's Tata Motors Ltd has said it will move the upcoming Tata Nano plant from its planned eastern India location if the violent protests don't end. The tension is between the industry that is pushing for the 1,000-acre plant and the farmers who wish to retain the land for agricultural use. After the unveiling of the plant in January, which was hailed by the state's ruling Communists, the protests have been gathering steam. It eventually led to the violent clash last week as more than 1,000 people marched against the planned facility. The announcement from Tata Motors is significant as the company has invested more than 1,500 crore rupees ($350 million) in the project so far, and there is no alternate plan to replace the facility at Singur (although the Nano is going to be manufactured at other plants, as well). In addition, other manufacturers who are expanding into India (including Nissan, Renault, GM, and Hyundai) are watching the unfolding events very closely as they plan their next moves.
Raze 1,000-acres of farmland to build an automobile factory, and somebody is going to protest. Even in India. The automaker is Tata, and the protesters numbered at least 1,000 strong as they went head-to-head against police in eastern India yesterday at the future manufacturing site of the Tata Nano (rumored to be the world's cheapest car at just $2,380). The protests are rooted deeper than just "open space" issues. In fact, the real tension is between India's ruling party, and the communist-run government in West Bengal where the plant is to be located. The farmers are unwilling to part with their agricultural livelihood, while the government continues to promote industry. After blocking a highway for a few hours, the stick-wielding protesters were dispersed without injuries. Once again, progress wins out over pastures.
