Jaguar Land Rover has shelved its plan to jointly produce EVs with Tata Motors in India as per a latest report by Reuters. Earlier in September last year, JLR and Tata Motors had finalised plans to manufacture the former’s Electrified Modular Architecture (EMA) platform-based EVs in India for the global markets. However, the plans have now fallen through as the economics were not working out, Reuters reported, quoting sources familiar with the matter.
- JLR was to produce EVs at Tata’s upcoming Tamil Nadu plant
- Local suppliers couldn’t meet the price-quality balance
JLR local manufacturing plans hit with cost challenges
JLR has suspended talks with local suppliers
JLR’s EVs were to be built in Tata Motor’s upcoming new plant in Tamil Nadu which was slated to produce over 250,000 units annually once it reached full capacity in about 5-7 years. JLR was also to locally source the EV components. However, the British luxury carmaker was unable to find the right price-quality balance for its locally-sourced EV parts, which is why it has now backtracked on its plans.
JLR reportedly hosted a meeting with local suppliers in Mumbai in November last year, where it shared details and plans of locally sourcing the EV components. The suppliers were asked to provide initial information on the pricing of parts. However, the talks have completely been suspended now.
Tata Avinya models likely delayed
Tata’s Avinya range of models are to use JLR EMA platform
This is also expected to delay Tata’s own Avinya range of premium EVs which are to use JLR’s EMA platform, bringing economies of scale for both companies. Some components were to be jointly sourced for both companies and Tata’s EV unit had planned to firm up orders with some suppliers by the end of January.
However, Tata Motors is now reportedly having to make changes to its designs as the economics of its plan are not working without JLR. The first of the Avinya range of EVs was originally slated to debut in 2025 itself. However, earlier in January this year when Tata debut the second concept in the Avinya range – the Avinya X – we learnt the first model is expected to hit showrooms in 2026. Now, it remains to be seen if it is further delayed beyond 2026.
In a statement to Reuters, Tata Motors said that the production timelines and choice of models to be built at the new factory will be aligned with Tata and JLR’s broader strategy and market requirements.
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