Tata Motors has finalised plans to move its beleaguered Nano auto plant to the state of Gujarat. Chandrajit Banerjee of the Confederation of Indian Industries, termed Gujarat "one of the most investor-friendly states, with an impeccable record of industrial relations."

"The CII is working closely with the government of Gujarat to promote further industrialisation of the state through the 'Vibrant Gujarat' initiative, by highlighting the superior infrastructure, industrial climate and efficient governance in the state," addded Banerjee.

Society of Indian Automobile Manufacturers (SIAM) director general Dilip Chenoy opined that the deal had "reinforced the confidence that the Indian automobile sector is poised for steady growth and is seen as the next global destination for international automobile manufacturers."

Meanwhile, the company has developed a new variant of its Ace commercial vehicle. The four-wheeled vehicle will reportedly have a payload capacity of 0.5 tons. The original Ace went on sale in May 2005 and successfully competes with a variety of other mini-trucks, including those produced by Bajaj Auto, Piaggio, Mahindra and Force Motors.

It should be noted that a number of international automobile companies have taken steps to significantly accelerate production in India. For example, Hyundai currently produces 500,000 vehicles on an annual basis and plans to raise the number to 650,000 in 2009. Suzuki exported a total of 50,000 cars in 2007 and hopes to increase foreign sales to 2 lakh units over the next two years.

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