India's Tata Motors has announced it will move production of its low-cost car, after weeks of violent protests in the country's east over a land dispute.

Chairman Ratan Tata Friday said he decided to move the $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.

Work there was shut down for several weeks after deadly protests by the state's main opposition party Trinamool Congress.  Opposition leaders have said local villagers were unfairly compensated for their land, which was used to build the Tata factory.

Efforts to resolve the land dispute failed, with protesters recently rejecting a government offer to return 30 hectares of land.

Tata says the company is examining offers from three or four states to host production of the car.