JLR Cancels EV Plan at Tata's Tamil Nadu Plant
ECONOMY & POLICY

JLR Cancels EV Plan at Tata's Tamil Nadu Plant

Jaguar Land Rover (JLR) has decided against manufacturing electric vehicles at Tata Motors' upcoming $1 billion facility in southern India due to challenges in balancing cost and quality for locally sourced EV components. Additionally, the decision aligns with the broader trend of slowing demand for electric vehicles worldwide.

The shift in strategy is impacting Tata Passenger Electric Mobility, Tata Motors' electric vehicle division, as it delays the introduction of its premium Avinya models. These vehicles were intended to be built on the same platform as JLR’s electric models, with certain components jointly sourced.

Construction of the new factory began in September, designed to manufacture a variety of vehicles, including EVs. At full capacity within five to seven years, it is expected to produce over 250,000 cars annually. The initial plan involved JLR producing more than 70,000 electric vehicles and Tata’s EV unit manufacturing around 25,000 at the facility.

The decision comes as global carmakers reassess their electrification strategies due to increasing competition from Chinese manufacturers, growing preference for hybrid models, and adjustments in government regulations and EV sales targets. Tata Motors, India's leading EV manufacturer, faces rising competition from companies such as JSW MG Motor and Mahindra & Mahindra, which have introduced advanced models with longer driving ranges. Tesla is also preparing to enter the Indian market.

JLR had previously engaged with local suppliers in Mumbai in November, exploring potential component sourcing. However, discussions have now been halted. Tata’s EV division, which initially planned to finalize supplier agreements by January, is now revising its designs due to the economic feasibility challenges posed by JLR’s decision. As a result, the launch of the Avinya EV, initially scheduled for 2024, has been postponed to 2026-2027, with potential for further delays.

News courtesy: Business Standard

Jaguar Land Rover (JLR) has decided against manufacturing electric vehicles at Tata Motors' upcoming $1 billion facility in southern India due to challenges in balancing cost and quality for locally sourced EV components. Additionally, the decision aligns with the broader trend of slowing demand for electric vehicles worldwide. The shift in strategy is impacting Tata Passenger Electric Mobility, Tata Motors' electric vehicle division, as it delays the introduction of its premium Avinya models. These vehicles were intended to be built on the same platform as JLR’s electric models, with certain components jointly sourced. Construction of the new factory began in September, designed to manufacture a variety of vehicles, including EVs. At full capacity within five to seven years, it is expected to produce over 250,000 cars annually. The initial plan involved JLR producing more than 70,000 electric vehicles and Tata’s EV unit manufacturing around 25,000 at the facility. The decision comes as global carmakers reassess their electrification strategies due to increasing competition from Chinese manufacturers, growing preference for hybrid models, and adjustments in government regulations and EV sales targets. Tata Motors, India's leading EV manufacturer, faces rising competition from companies such as JSW MG Motor and Mahindra & Mahindra, which have introduced advanced models with longer driving ranges. Tesla is also preparing to enter the Indian market. JLR had previously engaged with local suppliers in Mumbai in November, exploring potential component sourcing. However, discussions have now been halted. Tata’s EV division, which initially planned to finalize supplier agreements by January, is now revising its designs due to the economic feasibility challenges posed by JLR’s decision. As a result, the launch of the Avinya EV, initially scheduled for 2024, has been postponed to 2026-2027, with potential for further delays. News courtesy: Business Standard

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code