It has come to light that European nations Poland and Slovakia are presently in direct contest for a car plant project from an Indian whose identity remains a mystery.
It has come to light that European nations Poland and Slovakia are presently in direct contest for a car plant project from an Indian whose identity remains a mystery. The project which has been estimated to be worth $1.9 billion will be a massive undertaking for either nation. Janusz Piechocinski, Deputy Prime Minister of Poland, who revealed this information further went on to inform us that the unnamed Indian auto maker is aiming to begin manufacture by the end of 2019 at the proposed plant, which will have a per annum capacity of 350,000 units.
Janusz Piechocinski, Deputy Prime Minister of Poland revealed the details of an Indian manufacturer looking to set up a manufacturing plant in Europe, but did not reveal the name of the auto maker.
One of two manufacturers are most likely to be behind this deal and they are Tata Motors and Mahindar Automotive. Both of these companies have the means to invest the sizable investment necessary for this project and both are presently undergoing massive expansion in the global market and are looking to expand global manufacture as well.
Despite Janusz Piechocinski’s silence on the name of the Auto-manufacturer in question, reports from the Polish media strongly indicate that it is Tata Motors. The sixth round of negotiations are currently underway. Should Poland land this project, it will be “the biggest investment in the car manufacturing industry in Poland,” according to the Deputy Prime Minister, and will increase thir proportion of locally produced cars to over 50%.
If reports in the Polish media are to be believed, Tata Motors is most likely the unnamed manufacturer look to invest $1.9 Billion in a new plant.
At present, General Motors’ Opel, Opel and Fiat all have manufacturing plants in Poland. Combined, they generated a total output of 578,311 units last year. This figure accounts for a sizable 7% of the total industrial output from the Central European nation.
The Polish government is willing to back this enterprise to the extent allowed by the laws of the European. Furthermore, the cost of auto labor in Poland is lower than Slovakia, at 8.79 euros an hour, as compared to Slovakia’s 10.57 euros according to data gathered from German Association of the Automotive Industry known properly as Verband Der Automobilindustrie (VDA). This could sway the decision in favour of Poland.
JLR, which is owned by Tata Motors, will most likely take advantage of a new European plant set up by its parent company.
It is further believed that Jaguar Land Rover may use Tata Motors European plant for manufacture of some their products as well, further strengthening their position in Europe.
Source: Economic Times
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