Jaguar Land Rover has shelved its plan to jointly produce EVs with Tata Motors in India according to a latest report by Reuters. Last September, 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, according to sources familiar with the matter.

1. JLR was to produce EVs at Tata’s upcoming Tamil Nadu plant
2. 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 Motors' upcoming new plant in Tamil Nadu that was slated to produce over 2,50,000 units annually once it reached full capacity in 5-7 years. JLR also planned to source the EV components locally. However, the luxury British carmaker was unable to find the right price-quality balance for its locally sourced EV parts, and hence, has backtracked on its plans.

JLR reportedly hosted a meeting with local suppliers in Mumbai last November, 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, but talks have been completely suspended now.

Tata Avinya models likely delayed

Tata’s Avinya range of models will use JLR EMA platform

This is also expected to delay Tata’s own Avinya range of premium EVs, which are said to use JLR’s EMA platform, helping in 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.

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, but, when Tata debuted the second concept in the Avinya range – the Avinya X – in January, we learnt that the first model is expected to hit showrooms in 2026. Now, it remains to be seen if it will be delayed further.

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.