Nope, not crazy. The land for the factory was forceably taken from the local peasant farmers. Riots ensued when the farmers fought back and demanded compensation at least for their land. Don't forget India is a poverty ridden country with vast wealth for the few at the top like Tata and penury for the peasants or untouchables at the bottom. This whole Nano, £1,000 car is grade A BS. Material costs for plastics, electrics(copper) etc have doubled and trebled since the concept stage. Tata is trying to save face by blaming rioting peasants for the no-show of his miracle car. The whole thing is unviable and believe will be run into the sand and then forgotten about within 12 months.
Tata has borrowed to buy JLR with a bridging loan. Worldwide refinancing credit on cheap terms, circa 5% or so, has disappeared. JLR is threatened by the empty pockets of Tata. His best bet is his tie up with Fiat and 6% odd shareholding by Daimler. Without these links I think Tata Motors would be bankrupt already. India in general and its miracle economy is very unstable and unlike China's boom is very narrowly based on a small number of incredibly rich families. It is not a recipe for long-term growth stability.
