Tata Motors European plant in the works? Poland and Slovakia in contention to land a USD 1.9 billion deal from an Indian automaker

The information comes from Polish Deputy Prime Minister Janusz Piechocinski. The politician also revealed that the company in question is looking to start production in 2019 and will have an installed capacity of 350,000 units per annum.

Tata European plant
Tata Motors European plant would be of great strategic importance considering that JLR can also benefit from it.

Such an investment is a very huge undertaking for an Indian automaker but both Tata Motors and Mahindra are working on expanding their international presence and both conglomerates have the means for an investment of such a large proportion.

While the Deputy Prime Minister declined to confirm the identity of the automaker, Polish media reports indicate that it is Tata Motors. Sixth round of negotiations is going on between the car company and Polish government. If Poland wins the project, it would enhance its industrial output and increase the proportion of locally produced cars to over 50%.

Poland auto industry
Poland’s auto industry, populated by VW, Opel, Fiat, etc., contributed to 7% of the nation’s industrial output in 2014. (Photo: Arch. Marek Pilaczynski / GDDKiA)

As of now, Poland is home to car plants of GM’s Opel, Fiat and Volkswagen whose combined production volume stood at 5,78,311 units last year. This accounted to 7% of the country’s industrial output. Poland is open to lending the Indian automaker in question the state support allowable under European Union law.

Assuming that it is Tata Motors, a European plant will be a huge strategic advantage when globally relevant products like Q501/Q502 SUVs are market ready. Not to mention the possibility of JLR using the new plant for its benefits.

Via – Reuters

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