India's Tata Motors to make Nano in Gujarat state

MUMBAI, Oct 7 (Reuters) - India's Tata Motors Ltd (TAMO.BO: Quote, Profile, Research) said on Tuesday it will make its ultra low-cost Nano in Gujarat state and will launch the car in the the Jan-March quarter of 2009, after it pulled out of West Bengal last week because of protests.

The plant in Sanand, near Ahmedabad, will be located on about 1,100 acres, and will have an initial capacity of 250,000 units, which can be expanded to up to 500,000 cars per year, Tata Motors said in a statement.

Tata Motors, which had planned to launch the Nano car around October, said in the meantime it would explore the option of making the Nano at its existing facilities in western Pune city and in northern Pantnagar.

Tata Motors, which had planned to make 250,000 units of the Nano car at the Singur plant, on Friday said it would pull out of West Bengal, where farmers unhappy with the compensation for their land had forced work to be suspended for more than a month. ($1=47.9 rupees) (Reporting by Rina Chandran; Editing by John Mair)