Jaguar Land Rover Halts EV Plans at Tata Motors’ $1 Billion India Plant

Jaguar Land Rover (JLR), a subsidiary of Tata Motors, has put a stop to its plans to manufacture electric vehicles (EVs) at Tata’s upcoming $1 billion facility in Tamil Nadu, according to the news reports. The decision was made due to difficulties in achieving the right balance between cost and quality for locally sourced EV components.

Supplier Talks Discontinued

In November 2024, JLR met with local suppliers in Mumbai to discuss sourcing components for its EV production in India. However, the company later halted these discussions. Tata’s EV unit had initially planned to finalise orders with suppliers by January 2025, but those plans have also been impacted.

Tata’s EV Strategy

As the reports suggest, the Tamil Nadu plant was expected to produce over 250,000 vehicles annually at full capacity within 5-7 years. JLR was to manufacture more than 70,000 EVs, while Tata’s EV division had planned for 25,000 units. With JLR no longer proceeding, Tata’s EV strategy is being revised.

Tata has also delayed the launch of its Avinya EV from 2024 to 2026-2027. It is unclear whether the suspension of JLR’s plans will lead to further delays.

Market and Demand Shift

The decision comes at a time when global carmakers are adjusting their EV strategies. Competition from Chinese automakers, a growing preference for hybrids, and changes in government regulations have influenced these shifts.

Tata remains India’s largest EV maker, but it faces increasing competition from Mahindra & Mahindra, JSW MG Motor, and Tesla, which is preparing to enter the Indian market. Currently, EVs account for only 2% of India’s total annual car sales of 4 million units.

Conclusion 

Despite JLR’s decision, Tata Motors will continue with the construction of the plant, which began in September 2024. The facility will manufacture vehicles apart from EVs, and Tata has stated that production timelines and model selection will be adjusted based on market conditions.

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