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(Source: Reuters)
Jaguar Land Rover (JLR) has suspended its plan to manufacture electric vehicles at Tata Motors‘ upcoming $1 billion factory in southern India, according to four sources familiar with the matter. The decision stems from difficulties in sourcing EV components at competitive costs and slowing demand for electric cars, three sources said.
A supplier source confirmed that work on JLR’s EV production in India was halted about two months ago. The move is expected to impact Tata Passenger Electric Mobility’s timeline for launching premium Avinya models, which were to share components with JLR’s EVs. Tata began the construction of the plant in September, aiming to produce over 250,000 cars annually at full capacity within 5-7 years. JLR initially planned to manufacture over 70,000 EVs at the site, while Tata’s EV unit planned 25,000.
Global automakers are adjusting EV strategies due to rising competition from Chinese firms, shifting consumer preference toward hybrids, and relaxed government EV targets. Tata, India’s leading EV seller, faces increasing competition from JSW MG Motor, Mahindra & Mahindra, and Tesla, which is preparing to enter the market. JLR previously engaged local suppliers in Mumbai in November, discussing component pricing, but those talks have since stopped. JLR primarily produces vehicles in Britain, Europe, and China, with some models assembled at Tata’s Pune plant.
Tata had planned to finalize supplier agreements by January but is now revising its designs due to JLR’s withdrawal, two sources said. The company had already delayed the Avinya EV launch to 2026-2027. In response, Tata stated that model production timelines and plant output will align with its broader market strategy, emphasizing ongoing evaluations of design, supply chain, and costs.
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