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

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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

Next Story
Infrastructure Urban

IHC and Adani to Invest US$11.5 bn in Odisha Aluminium Project

Abu Dhabi's International Holding Company (IHC) will invest US$11.5 bn in an integrated aluminium project in the eastern Indian state of Odisha in a joint venture with the Adani Group, a state official said. The official said the announcement represented the country's largest foreign investment in mining and metallurgy. Officials said the venture would span both mining and metallurgical activities across several facilities in the state. The project has been described as integrated, encompassing upstream bauxite extraction and downstream smelting and metallurgy, and is intended to develop a com..

Next Story
Infrastructure Transport

Air India and SIAEC to Explore MRO Joint Venture in India

Air India and SIA Engineering Company (SIAEC) have signed a memorandum of understanding (MoU) to explore the formation of a maintenance, repair and overhaul joint venture in India. The MoU, signed on Friday, will examine collaboration to develop India as a global aviation MRO hub and to serve growing needs across the Indian and regional markets. SIA Engineering Company, part of the Singapore Airlines Group which holds a 25.1 per cent stake in Air India, will bring technical expertise alongside Air India's established airline operations network. The partnership builds on existing cooperation be..

Next Story
Infrastructure Transport

Assam and Centre Review Aviation Projects Push Silchar Airport Approval

Assam and the Centre on Thursday, July two reviewed a series of aviation infrastructure projects aimed at strengthening air connectivity across the state, with the proposed greenfield airport at Silchar emerging as a key priority. The review formed part of broader efforts to position Assam as a major aviation and logistics hub for the north east. Officials outlined timelines and preparatory work that they said would guide the next stages of project approvals. The Chief Minister met the Union Civil Aviation Minister at Rajiv Gandhi Bhavan in New Delhi and described the meeting as very productiv..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement