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Protests over the ownership of the land on which the Nano factory is being built have also raised doubts over whether the car will be ready on time in the volumes that Tata had planned.
Indian analysts forecast that Tata will need to produce nearly 400,000 Nanos a year to make a profit, above a planned initial capacity of 250,000...
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Analysts and rival manufacturers expect Tata, the conglomerate behind the Nano, to suffer heavy losses on the car as its promise to sell a basic model for only 100,000 rupees (?1,250) - a price calculated to tempt India's middle classes away from their motorcycles - proves unexpectedly costly.
Ratan Tata, the chairman of Tata, has admitted that he faces a dilemma...
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