Tata Motors, the Indian auto behemoth, has decided to enter Eastern Europe with a halt at Romania. and they have enough financial resources at their disposal to do so. Since they are the proud owners of Jaguar-Land Rover group, it would be prudent to count them as potential investors. Now there are reports that the Indian giant might move into a Romanian village of Jucu, where they plan to invest €1 billion.
As a result, Tata officials are already holding negotiations with the local authorities, and officials are tightlipped about the outcome of the discussions going on between them.
The plan is to build an entire production facility, which would build not only passenger cars, but also buses, trucks and commercial vehicles. An entire eco system of Components suppliers could be arranged locally and supply chains could be created without having to bring in too many parts from abroad.
Also, there are reports that if the deal does go through then Tata may very well build the next generation of its Nano city car at the plant.
The current Nano doesn`t comply with the strict EU regulations, and hence would not be produced at the plant.
Taking the whole scenario into account it would be prudent for Tata to operate a large production facility out of Romania, as the country, located in the southeastern part of the continent is a member of the EU, and therefore any exports from that country would not incur heavy taxes and import/export duties.
Still talks are in progress and very soon a deal will be struck. If this happens it would be another achievement for the Tata since they are already based in Europe through Jaguar and Land Rover.
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