Tata Motors suspended work indefinitely at a factory building the world's cheapest car, the company said Tuesday, following increasingly violent protests by farmers demanding the return of their land.
No one has reported to work since Friday at the West Bengal Nano factory at the company's request, and some international staffers have gone home, the company said.

Local farmers have staged protests for nearly two years, complaining they didn't receive sufficient compensation for the land where the factory was built. The demonstrations have escalated, with protesters trapping workers inside the factory last week. 


"The situation around the Nano plant continues to be hostile and intimidating. There is no way this plant could operate efficiently unless the environment became congenial and supportive of the project," the company said in a statement late Tuesday.

"A detailed plan to relocate the plant and machinery to an alternate site is under preparation," the statement said.

Tata has already poured $350 million into its plant in Singur, which had been scheduled to roll out the first Nano in October. Sixty key suppliers have invested millions of dollars more for plants and equipment in the area.

"It's unfortunate and ominous for the state. There is no doubt about that. It is a sad day for West Bengal," said Nirupam Sen, the state's industry minister.

At about $2,500, the Nano is billed as the world's cheapest car.