India's Tata Motors Ltd said violent protests had forced it to suspend all work at the Singur plant in West Bengal, where it planned to make the Nano -- billed as the world's cheapest car -- and consider alternative sites.

The automaker said it cancelled work at the site for the past five days due to threats from protesters, who have been led by a regional opposition party.

The dispute reflects a larger standoff between industry in India and farmers unwilling to part with land in a country where two-thirds of the billion-plus population depend on agriculture.

"This decision was taken in order to ensure the safety of its employees and contract labour, who have continued to be violently obstructed from reporting to work," the company said in a statement.

The suspension came just as protesters agreed to talks over land seizures for the project, which analysts said stepped up pressure on the protestors to resolve the dispute.

The prospect of talks had raised hopes that the 100,000 rupee ($2,250) car could roll out on time in October to coincide with the Indian festive season.

"I am wondering how Tatas can make a statement when talks are on (to resolve the dispute)," said Partha Chattopadhayay, a leader of the Trinamool Congress party spearheading the protests. "I don't go by this statement. I have to wait."

Tata Motors said it was putting together a detailed plan for the relocation of the plant and machinery, and was evaluating options for manufacturing the Nano at other company facilities.

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