Europe: Poland and Slovakia mulling $1.9 billion factory form Indian carmaker image

According to Polish Deputy Prime Minister Janusz Piechocinski, both his country and Slovakia are competing to attract the investment stemming from the construction of a new auto plant by an Indian automaker.

Piechocinski refrained from naming the Indian carmaker, though Polish media widely reported that Tata Motors, the parent company of British luxury brands jaguar and Land Rover, was the automaker mulling to construct a new assembly facility in Poland. “The investor wants to start production in 2019,” Piechocinski said. “This will be 350,000 cars per year, the investment is worth 7 billion zlotys ($1.9 billion).” Poland already has a solid auto production base, with Volkswagen, GM’s Opel and Fiat Chrysler together building 578,311 cars in the country last year, making up around seven percent of the nation’s overall industrial output. “We are competing with Slovakia,” added the government official. If the country would win the bid, the number of vehicles built locally would jump by more than 50 percent on an annual basis. The government official added the country was also counseling the potential investor about the opportunities to receive state support under the European Union law.

In other, related news, Poland’s June new vehicle registrations of cars and small trucks jumped 18.7 percent on a yearly basis, surging after a 12 percent growth in May, according to industry monitor Samar. The top automakers in the country are Volkswagen and its Czech subsidiary Skoda, followed by Toyota, General Motors’ European peer Opel and Ford.

Via Reuters