Tata Motors considering a 1 billion Euro investment in Romania?
Posted on: Jan 18, 2013 - 3:20pm IST
The largest Indian auto maker, Tata Motors is reportedly considering a full fledged production facility in Romania, the homeland of Dacia.
According to the report by Dailybusiness.ro, Tata Motors is interested in investing in an industrial park named Tetorom 3. The third phase of the industrial park promoted by Cluj County Council (CCC) has a total industrial land of 154 hectares in the village of Jucu, near Cluj, Romania.
Report suggests that Tata Motors is negotiating a €1 billion investment with CCC but due to the manufacturer’s request for discretion in the process, there is no official comment from the county authorities. However, it is learnt that the Indian auto maker is considering a huge investment on a plant which could sprawl over 24 hectares of land in Jucu.
The proposed plant is expected to be a full fledged production facility which could cater to passenger cars, commercial vehicles and buses. The plant could source the components from the local vendors which could give them tax benefits.
With the new plant in place, Tata Motors can build the next generation Nano which will comply with European quality and safety norms along with CKD operations of Manza, Safari and Telcoline UVs. The commercial vehicle lineup would include the Prima trucks which were developed in association with Daewoo.
We have to mention our readers that the negotiations are still in the early stages, but if Tata Motors establish a plant in Romania, it would prove to be a strategically sound move for the company’s European operations, especially with next generations of its current portfolio in place.