Jaguar Land Rover (JLR), the luxury car division of Tata Motors, has dropped its plan to produce electric vehicles (EVs) at Tata’s forthcoming $1bn facility in southern India, reported Reuters citing sources familiar with the matter.
The decision was driven by challenges in sourcing EV components locally at a competitive price and a slowdown in the demand for electric cars.
A supplier source told the news agency: “For India, all the work (on JLR electric vehicles) has stopped. Everything has been suspended since about two months.”
The move is expected to delay Tata Passenger Electric Mobility’s plans to introduce the first of its premium Avinya models.
The launch of Tata’s Avinya EV, initially set for this year, was already postponed to 2026-2027 in January 2025.
The Avinya EV models were to share a platform at the new facility, with JLR’s EVs and jointly sourced components at the new facility.
The new factory, which broke ground in September 2024, is designed to produce over 250,000 vehicles annually at full capacity within seven years.
JLR’s original plans included the manufacture of over 70,000 electric cars at this facility, while Tata’s EV unit aimed to build 25,000.
In a statement to Reuters, Tata said 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 such as Mahindra and Mahindra, and JSW MG Motor, which have introduced new models with advanced features and extended driving ranges.
In November, JLR held discussions with local suppliers in the city of Mumbai, Maharashtra, about sourcing components.
Initial discussions on part pricing were initiated, but these talks have since been suspended, reported the news agency.
JLR primarily manufactures in Europe, Britain, and China, and assembles some models, such as the Range Rover SUVs, at Tata’s Pune plant in the state of Maharashtra.
Tata was quoted by the news agency as saying: “As part of our rigorous product development process, we continuously evaluate key factors such as design, supply chain readiness, and unit economics to ensure a competitive and high-quality offering.”
Earlier this year, JLR said it plans to invest £65m ($81.10m) to enhance its special paint facilities globally.
This investment aims to meet the “growing demand” for personalised luxury vehicles across its brands and slash the environmental impact of its carbon-intensive manufacturing.
