Tata Motors to begin JLR vehicle assembly at Chennai plant

Tata Motors has confirmed that it will begin assembling Jaguar Land Rover (JLR) vehicles at its Panapakkam plant near Chennai on February 9, 2026. The announcement was made during the company’s latest earnings call, marking an expansion of its luxury vehicle manufacturing footprint in India.  

This development effectively marks the operational debut of Tata Motors’s Panapakkam facility. The Rs 9,000 crore plant, announced in 2024, is designed for an annual capacity of up to 2,50,000 vehicles and is expected to employ over 5,000 people once fully ramped up. While this capacity is far higher than current luxury-car demand in India, it leaves room for future expansion, including exports.

1. Chennai plant to support phased JLR capacity expansion
2. Expansion prompted by capacity constraints at existing facilities
3. Pune facility to continue assembling JLRs from CKD units for now

While Tata Motors has not officially named the models that will be assembled at the facility, media reports earlier in the day suggested that the Range Rover Evoque could be the first JLR vehicle to be assembled there. The company, however, has not confirmed this.

Capacity limits drive shift beyond existing plants

Panapakkam to start with assembly operations

According to Tata Motors, the decision to activate the Chennai facility is largely driven by capacity constraints at its current manufacturing locations. The company’s MD and CEO (Passenger Vehicles), Shailesh Chandra, said, “Most of our plants are kind of running out of capacity, and in a couple of years, we need a full plot at Panapakkam.”

He added that the initial phase will focus on assembly operations, as other locations do not have adequate space for further expansion at present.

Pune plant continues JLR CKD operations for now

Current focus on expansion, not relocation

Currently, the Pune facility in Maharashtra assembles Jaguar Land Rover vehicles from completely knocked-down (CKD) units. When asked whether production would shift from Pune to Chennai, Chandra said clarity would be provided at a later stage, reiterating that only the start of JLR assembly at Chennai has been confirmed for now. The company did not confirm timelines for any relocation or addition of models beyond the initial assembly plan.

Richard Molyneux, CFO at JLR, reiterated India’s importance as a long-term growth market for the brand, even as it continues to trail German luxury rivals in annual sales volumes. JLR’s India volumes remain below five figures annually, well behind BMW, which is approaching 20,000 units a year. Management said it remains committed to strengthening JLR’s presence in India, supported by local assembly and capacity expansion.