JLR halts India EV manufacturing plans, impacting Tata’s Avinya launch timeline
Jaguar Land Rover (JLR) has decided to halt its plans to manufacture electric vehicles in India, a move that was expected to be in collaboration with Tata Motors. According to a recent report, the decision stems from economic challenges that made local production unfeasible. This development is also expected to impact Tata Motors’ upcoming Avinya range of EVs, which were set to share key underpinnings with JLR’s electrification strategy.
Challenges in Local Manufacturing
JLR had initially planned to build EVs on its Electrified Modular Architecture (EMA) platform in India, leveraging Tata Motors’ upcoming production facility in Tamil Nadu. The plant was projected to achieve an annual capacity of over 2,50,000 units within 5-7 years. As part of this strategy, JLR intended to source key components locally to optimise costs and supply chain efficiency. However, challenges in balancing cost and quality with local suppliers led to a reassessment of these plans.
Industry sources indicate that JLR had engaged with Indian suppliers last November, outlining component requirements and seeking initial cost estimates. However, discussions have now been suspended, signalling a shift in JLR’s manufacturing approach.
Implications for Tata’s Avinya EVs
The ripple effects of this decision extend to Tata Motors, particularly its premium Avinya EV lineup. The Avinya range was intended to incorporate JLR’s EMA platform, benefiting from shared sourcing and economies of scale. With JLR stepping back from its India production plans, Tata Motors is now reassessing its strategy, which could lead to further delays in the Avinya rollout.
Originally, the first Avinya model was scheduled for a 2025 launch. However, when Tata showcased the Avinya X concept in January 2024, the company revised its timeline, indicating a 2026 release. Given the recent changes in manufacturing plans, further delays cannot be ruled out.
Tata Motors’ Official Response
In response to the developments, Tata Motors stated that its production timelines and model selection for the new facility will be aligned with broader market strategies and the company’s long-term vision. The company emphasised that both Tata and JLR will continue to evaluate their manufacturing approaches based on evolving industry and market conditions.
While the shelving of JLR’s India EV production plans represents a setback for localised manufacturing efforts, the broader implications for Tata’s Avinya range and the Indian EV market remain to be seen.
