Tata Motors has denied it plans to open a vehicle assembly plant in Romania.
The dailybusiness.ro Web site said that the Indian carmaker plans to invest 1 billion euros to build a production facility to manufacture cars, buses, trucks and commercial vehicles.
A Tata Motors spokesman told Automotive News Europe that the carmaker is ''not considering such a step.''
Tata gained a strong foothold in Europe in 2008 after it bought Jaguar and Land Rover from Ford Motor Co. for $2.3 billion.
The company's core Tata brand has a small presence in the region selling just a few thousand units a year. The automaker currently markets the Vista hatchback and the Aria crossover in Italy and Spain.
Since launching the Nano in India in 2009, Tata has considered selling the minicar in Europe, but problems in India including incidences of electrical fires and poorer-than-expected sales have not led to the success Tata was hoping for with the model.
In 2011, Naveen Mishra, Tata Motors' regional head for Europe, told Automotive News Europe that the company would decide as early as this year whether it would expand its product portfolio and market presence in Europe.
Sales of affordable cars are growing in Europe at a time when most mass-market automakers are suffering a drop in deliveries. Hyundai sales were up 9.4 percent to 432,240 last year, while deliveries at affiliate Kia rose 14.6 percent to 337,466. Dacia, Renault’s budget brand, sold 239,546 in 2012, a fall of 5 percent, but less than total industry volume, which was down 7.8 percent to 12.5 million, according to ACEA, the European automakers association.