Tata Motors and JLR to Produce Electric Vehicles in India for Global Markets: Chandrasekaran

Tata Motors and Jaguar Land Rover (JLR) will produce electric vehicles (EVs) in India for international markets, according to Tata Sons Chairman N. Chandrasekaran. He detailed how the group aims to leverage the “cost attitude” and sophistication of the brands to achieve a strategic advantage.

Chandrasekaran noted that Tata Motors and JLR have been exploring synergies for several years and have now finalized their plans to manufacture EVs in India, as he shared in a recent interview with the ‘Autocar’ website.

According to Chandrasekaran, JLR’s electrified modular architecture (EMA) platform will be available in India in two variants, one from each of the two manufacturers. “JLR automobiles will also be exported from Sanand, Gujarat.”

Without providing further specifics, Chandrasekaran mentioned that both companies have “grand ambitions,” and Tata Motors plans to discuss its export strategies within a year.

Sanand, where Tata Motors has taken over Ford Motors’ former facility, is expected to produce the first vehicle based on the EMA platform. This vehicle, likely to be named Avinya, is anticipated to be manufactured for international markets as well as for sale within India.

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Tata Motors and JLR to Produce Electric Vehicles in India for Global Markets: Chandrasekaran

September 17, 2024

JLR has established a plan for electrification and operates factories in China, Europe, and the United Kingdom (UK). According to Tata Motors’ FY24 annual report, the corporation is transitioning to an electric-first business model, with all of its brands offering fully electric choices by 2030. The new EMA and Jaguar Electrified Architecture will be introduced starting in 2025. Globally, the company’s operations will be rearranged: Solihull will produce electric Jaguars first, and Merseyside, UK, will become the first all-electric production center. By 2030, JLR’s Nitra, Slovakia, facility will be modernized to manufacture electric cars.

JLR is collaborating with suppliers and partners to cut emissions by 46% within the company’s own operations and 54% per car throughout its whole value chain.

“We can combine the sophistication and design of JLR with the cost-conscious attitude of Tata Motors.” We will be in a great place if we can pull that off. Then, you gain in two distinct ways, and the volumes increase, which validates the investment made in the (EMA) platform, according to Chandrasekaran.

For Tata Motors to undertake such an investment on its own would not be feasible, and JLR volumes would not be sufficient. “We are discussing not just the platforms but also the architecture that is electric and electronic, or E/E.”

A new project of Rs 9000 crore is being developed in Tamil Nadu; it is anticipated to be a joint facility for Tata Motors and JLR. Apart from Sanand, this project might be another production hub for exports. Expect announcements later this month.

Over a few billion dollars will be invested in electric vehicles by Tata Passenger Electric Mobility before the end of this decade. Over the next five years, JLR has defined a capital expenditure (capex) strategy of over 15 billion UK pounds.

According to Chandrasekaran, the decline in EV sales is cyclical and only lasts a short while. Tata Motors has experienced difficult EV sales in FY25. While Tata Motors PV wholesales fell 1.1% overall in the first quarter of FY25, EV volumes (at 16,600 units) fell 13.9% as a result of a steep fall in the fleet market.

India has the most polluting cities in the world; therefore, if we have to do anything, electric vehicles should be given priority. Up to 14 of the 20 (such cities) are located in India. He continued, saying that by 2030, 30% of Tata Motors’ sales would be electric vehicles. “Therefore, in order to address this issue, we must pivot in all of our companies.”

According to Chandrasekaran, the Tata Group as a whole—rather than just Tata Motors—is shifting toward renewable energy. Additionally, we determined that Tata Power would not invest capital in coal. We’re investing all of our capital in renewables.