Jaguar Land Rover (JLR) has halted plans to manufacture electric vehicles (EVs) at parent company Tata Motors’ upcoming USD 1 billion facility in Tamil Nadu, citing challenges in sourcing local EV components at the right price and quality, according to sources familiar with the matter, according to a report by Reuters. The decision also reflects a broader slowdown in global EV demand.
JLR’s suspension of local EV production has implications for Tata Passenger Electric Mobility, which had planned to build its premium Avinya models on the same platform as JLR’s EVs. Some components for both brands were to be jointly sourced.
Tata began construction of the Tamil Nadu factory in September 2024. Once fully operational, the plant is expected to produce over 250,000 vehicles annually within five to seven years. Under the shelved plans, JLR was to manufacture over 70,000 EVs at the site, while Tata’s EV unit aimed to produce 25,000.
A supplier source stated that all work on JLR EV production in India had ceased around two months ago. Talks with local suppliers regarding component pricing, which had been initiated in November, have now been suspended.
Tata Motors confirmed that production timelines and model selection for the new plant will align with Tata and JLR’s overall strategy and market conditions. Tata, currently the largest EV seller in India, faces increasing competition from companies like JSW MG Motor and Mahindra & Mahindra, as well as potential market entry by Tesla.
JLR, which primarily manufactures vehicles in the UK, Europe, and China, assembles some models at Tata’s Pune plant in Maharashtra. The Tamil Nadu factory was expected to play a role in expanding its EV footprint in India, but the company has now shifted focus.
Tata Passenger Electric Mobility had initially planned to finalize supplier contracts by January but is now revising its designs due to the impact of JLR’s withdrawal. The launch of Tata’s Avinya EV, previously delayed to 2026-2027, may face further setbacks.