Tata Motors denies reports about a possible plant in Romania

Article by Christian Andrei, on February 1, 2013

Tata Motors denies that it is considering a plan to construct an auto assembly plant in Romania. According to the dailybusiness.ro Web site, the company is planning to invest 1 billion euros to open a production plant to build cars, buses, trucks and commercial vehicles. When asked by Automotive News Europe, a Tata Motors spokesman said there’s no plan like that being considered.

Tata was able to get a foothold in 2008 in Europe when it acquired Jaguar and Land Rover from Ford Motor Co. for $2.3 billion. The core Tata brand’s presence in the region is small.

It sells only a few thousand units each year. Tata presently sells the Vista hatchback and the Aria crossover in Italy and Spain. Since the Nano was launched in India in 2009, Tata had thought about offering the minicar in Europe.

However, it didn’t do well due to problems like incidences of electrical fires and lower-than-expected sales.

Tata Motors' regional head for Europe Naveen Mishra told Automotive News Europe in 2011 that the company would decide as early as 2013 if it will expand its product portfolio and market presence in Europe.

Relatively inexpensive cars are selling more in Europe just as majority of mass-market automakers are experiencing a decline in deliveries. Last year, Hyundai sales grew by 9.4% to 432,240.

Meanwhile, Kia’s deliveries increased by 14.6% to 337,466 units. In 2012, Renault’s budget brand Dacia reported sales of 239,546 units, standing for a 5% decrease but still lower than the total industry volume, which fell by 7.8% to 12.5 million, according to European automakers association ACEA.

Topics: tata motors, romania

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