India's Tata Motors has decided to move production of its low-cost car to western India.
Tata's chairman Ratan Tata Tuesday signed an agreement with state government officials to begin manufacturing the Nano in Gujarat state.
Last week, the automaker announced it would pull its $350-million plant out of Singhur in West Bengal state because of continued opposition to its presence there.
The factory was set to manufacture what is being called the world's cheapest car - the Nano - priced at around $2,000.
Today, Tata's chair said the company would do its best to adhere to a previously set timeline of launching the Nano by the end of this year.
The new plant will be located in the town of Sanand, outside of Gujarat's main city, Ahmedabad. Tata officials say the factory will initially manufacture some 250,000 cars.
Tata pulled out of West Bengal after several weeks of deadly protests by the state's main opposition Trinamool Congress party. Opposition leaders have said local villagers were unfairly compensated for their land, which was used to build the Tata factory.