Jaguar Land Rover Drops India EV Manufacturing Plans Amid Cost Challenges

Jaguar Land Rover (JLR) has reportedly scrapped its plans to manufacture electric vehicles (EVs) in India in collaboration with Tata Motors, according to Reuters. Initially, the automaker intended to produce EVs based on its Electrified Modular Architecture (EMA) platform at Tata Motors’ upcoming facility in Tamil Nadu. However, sources indicate that the decision was reversed due to economic constraints.

Key Reasons Behind JLR’s Decision

  • Manufacturing Hub Abandoned: JLR’s EVs were to be built at Tata’s new Tamil Nadu plant, which was expected to reach an annual capacity of 2,50,000 units within 5-7 years.
  • Supplier Issues: The automaker struggled to find local suppliers that could meet its price and quality expectations.
  • Suspended Talks: JLR had engaged with Indian suppliers in November 2024 to explore local sourcing for components. However, discussions have now been put on hold.

Impact on Tata Motors and the Avinya EV Lineup

Tata Motors had planned to leverage JLR’s EMA platform for its upcoming Avinya range of premium EVs. The joint venture would have enabled cost efficiencies by sharing components. With JLR stepping away, Tata is reportedly revising its designs and sourcing strategy.

The first Avinya model was initially set to launch in 2025, but after unveiling the Avinya X concept in January, Tata Motors hinted at a 2026 debut. With the latest developments, further delays seem possible.

In response to the report, Tata Motors stated that production timelines and model selection at the new factory will align with the broader strategies of both Tata and JLR, based on market dynamics.

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