Tata Motors’ luxury car division, Jaguar Land Rover (JLR), has made the decision to halt its plans to produce electric vehicles (EVs) at Tata’s upcoming $1 billion facility in southern India. This decision was reportedly influenced by challenges in sourcing EV components locally at a competitive price, as well as a slowdown in the demand for electric cars.
According to sources familiar with the matter, all work on JLR electric vehicles for the Indian market has been suspended for about two months now. This move is expected to delay Tata Passenger Electric Mobility’s introduction of the premium Avinya models, originally scheduled for launch this year but now postponed to 2026-2027.
The Avinya EV models were to share a platform with JLR’s EVs and jointly sourced components at the new facility, which aims to produce over 250,000 vehicles annually at full capacity within seven years. JLR had initially planned to manufacture over 70,000 electric cars at this facility, while Tata’s EV unit aimed to build 25,000.
Tata stated that the production schedules and model selections for the Tamil Nadu factory would align with both Tata and JLR’s strategic and market needs. This change comes as Tata faces increasing competition from companies like Mahindra and Mahindra, and JSW MG Motor, which have introduced new models with advanced features and extended driving ranges.
JLR had discussions with local suppliers in Mumbai about sourcing components, but these talks have been suspended. The company primarily manufactures in Europe, Britain, and China, assembling some models at Tata’s Pune plant in Maharashtra.
In the midst of these developments, JLR announced plans to invest £65 million ($81.10 million) to enhance its special paint facilities globally. This investment aims to meet the growing demand for personalized luxury vehicles and reduce the environmental impact of its manufacturing processes.
As Tata and JLR reassess their strategies in the electric vehicle market, it will be interesting to see how they adapt to changing demands and competition in the industry.
