In a big development, Jaguar Land Rover (JLR) has reportedly scrapped its plans to locally manufacture electric vehicles (EVs) in India. This comes at a time when global OEMs like Tesla are pushing to enter into the Indian EV market amidst serious competition from Chinese EV brands.
According to a Reuters report, the British luxury carmaker has dropped its plans for local manufacturing in India since it was unable to find the right price-quality balance for locally sourced EV parts. The decision also reflects slowing demand for electric cars. Last year, JLR had announced that it will manufacture its luxury EVs in India at Tata Motors’ upcoming facility in Tamil Nadu worth USD 1 billion (approx. Rs 8,708.6 crore).
The report further mentions that work on the JLR EVs has been suspended since the last two months. Global automakers are adjusting their electrification strategies in response to intense competition from Chinese manufacturers, growing consumer preference for hybrids, and the relaxation of government deadlines for emission regulations and EV sales targets.
JLR had planned to manufacture around 70,000 EVs at this facility on a yearly basis both for domestic and export markets. The new EVs were set to be based on the company’s Electrified Modular Architecture (EMA) platform. This will also put Tata’s premium range of Avinya models on hold since they were to be built on JLR’s EMA architecture.
Tata was planning to produce 25,000 units of Avinya EVs at the Tamil Nadu facility which will also assemble vehicles other than EVs, in September. The plant was expected to reach its full production capacity in about 5-7 years. Let us talk about some of the reasons that led to JLR pulling back on its plans.
JLR shelves EV plans for India: Why?
The Reuters report mentions that economics for JLR manufacturing in India is not working out. In November, JLR held a meeting with local suppliers in Mumbai, where it outlined its plans and discussed sourcing components locally. While some suppliers were initially asked to provide pricing details for parts, these discussions have now been reportedly put on hold.
JLR primarily manufactures its vehicles in Britain, Europe, and China but assembles select models, such as the Range Rover SUVs, at Tata’s facility in Pune, Maharashtra. Tata’s EV division had initially aimed to finalize supplier orders by the end of January. However, it is now revising its designs as the financial feasibility of its plan is uncertain without JLR’s involvement, the report confirmed.
In January, Tata postponed the launch of its Avinya EV from this year to 2026-2027. It remains unclear whether the current situation will lead to further delays. Tata has revealed that production timelines and choice of models to be built at the new Tamil Nadu factory will be aligned with Tata and JLR’s broader strategy and market requirements.
Though Tata Motors is the largest EV player in the PV space, the homegrown carmaker faces growing pressure from rivals like JSW MG Motor and Mahindra which have launched new, feature-rich models with longer driving ranges in recent months. Tesla is also finalising plans to launch EVs in India, which is the world’s third-largest car market with 4 million vehicles sold annually. EV sales currently account for about 2% of total car sales.
