Tata Motors of India has announced on Wednesday that the world's cheapest car, the Nano, would again start rolling out from its new western India plant following the company's forced desertion of its near-completed factory in Singur, West Bengal which was marred by violent land ownership dispute in 2008.

Tata Group chairman Ratan Tata officially launched the new facility, now located in the western state of Gujarat, with his pronouncement that the Nano will ply the roads of India and will give its people the chance to own and drive their personal transport.

At present, the Nano, which is also assembled in smaller factories around India, has sold 35,000 units, which is much lower than earlier projections, following its initial roll out on July last year with a price tag of about 100,000 rupees or $A2,589.

The car has been touted as the vehicle of choice by the nation's aspiring middle class, who usually travel around on their two-wheelers.

Tata Motors said that deliveries from the newly-opened plant would commence by the end of June but more units would still come from the assembly facilities in the northern state of Uttarakhand to fill the back orders for the car.

The company said that it would continue checking sold units following allegations from Nano owners that fires have hit some cars though it emphasised that inspections are being carried out to allay owners' concerns and the company is not recalling units currently on the road.

Car makers around the world have been shifting their focus on India as the next big market for their products, owing to the nation's huge population of 1.2 billion which consists of a ballooning affluent consumers but still low rates of car ownership.

Latest estimates showed that merely 13 out of 1000 Indians own a car as compared to 550 out of 1000 in Germany and 495 out of 1000 in France.