JLR announced last year that it would produce EVS at Tata Motors’ plant in Tamil Nadu. Under this decision, there were plans to create 70,000 EVS every year, including India with export markets. However, now the Reuters report states that JLR has stopped work on this project for the last two months. The company will now continue production in Britain, Europe and China instead of assembling EVs in India or creating a local.
JLR’s decision can also affect the upcoming Avinya EVs of Tata Motors. These electric vehicles were to be built on the same electrified modular structure (EMA) platform, which JLR was to use for its EVS. Now that JLR has stopped work on this platform, TATA may also have to re -work on its premium EVS strategy. Tata was planning to produce 25,000 Avinya EVS from September this year at the Tamil Nadu plant, but now there is a possibility of possible delay.
The report further states that JLR held a meeting with local suppliers in Mumbai in November, in which there was a discussion about the sourcing of EV parts in India. However, these deals were later put on hold. There are many reasons behind this, in which the cost of local components and lack of quality, increasing demand for hybrid cars and relaxation in the government’s EV targets and increasing competition from Chinese EV brands.
JLR currently assembles some models at Tata Motors plant in Pune, but India will have to wait for a full manufacturing. At the same time, Tata Motors can now design their EV plan afresh.
