This shift from West Bengal to Gujarat was undertaken following violence and political protests against land acquisition by Tata Motors Limited. This shift not only delayed the project significantly, but also had far reaching impact on market value of the Nano.
Following severe constraints met with in Singur, West Bengal in 2008 regarding the setting up of Nano plant in the region, Tata Motors had to face a delay of close to a year in setting up of a new plant in Sanand, Gujarat. This delay gave rise to a number of competitors who questioned the viability of the project thus leading to a substantial drop in demand and marketability of the Nano.
Tata also mentioned that when the Nano project was initially announced, it gave rise to global anticipation, razing the myth that no car could be produced priced under $2,500 (INR 1 lakhs in those days).
It caused a buzz in markets with heavy bookings despite the fact that waiting period was of two years. This world’s cheapest car which once caused a global sensation has failed to capture buyer’s attention. Sales have seen a rapid decline with the company still making extensive efforts to revive sales by launching refreshed models of the Nano, as the company continues to believe that there is much more potential in the project.
via Economic Times