Skip to content
Search

Latest Stories

JLR halts plan to build EVs at Tata’s India plant: Report

Automakers worldwide are adjusting their electrification strategies due to increasing competition from Chinese manufacturers, rising demand for hybrid vehicles, and changing government policies on emissions and EV sales targets.

JLR-Tata-Getty

JLR had initially planned to manufacture more than 70,000 electric vehicles at the facility. (Photo: Getty Images)

JAGUAR LAND ROVER (JLR) has put on hold plans to manufacture electric vehicles at Tata Motors’ upcoming £775 million factory in southern India, according to a news report.

The decision was influenced by challenges in balancing price and quality for locally sourced EV components, three of the sources said. They added that slowing demand for electric vehicles was also a factor.


“All the work (on JLR electric vehicles) in India has stopped. Everything has been suspended since about two months ago,” a supplier source told Reuters.

Automakers worldwide are adjusting their electrification strategies due to increasing competition from Chinese manufacturers, rising demand for hybrid vehicles, and changing government policies on emissions and EV sales targets.

JLR’s move is expected to delay Tata Passenger Electric Mobility’s plan to launch its premium Avinya models, sources told Reuters.

The Avinya models were to be built on the same platform as JLR’s electric vehicles, with some components jointly sourced.

Tata started construction of the new factory in September. The plant, which will manufacture both electric and non-electric vehicles, is expected to reach full capacity in 5-7 years, producing over 250,000 cars annually.

JLR had initially planned to manufacture more than 70,000 electric vehicles at the facility, while Tata’s EV unit was set to produce 25,000, according to sources.

Tata, in a statement to Reuters, said that production timelines and model selection for the new Tamil Nadu plant will align with the company’s broader market strategy.

Tata is the leading EV manufacturer in India but faces increased competition from JSW MG Motor and Mahindra and Mahindra, which have introduced new models with extended driving ranges.

Tesla is also preparing to launch EVs in India, where annual car sales total 4 million, with electric vehicles making up about 2 per cent of the market.

Economic challenges

JLR had held discussions with local suppliers in Mumbai last November, sharing plans and exploring options for sourcing components locally.

Some suppliers were asked to provide preliminary pricing information, but these discussions have now been halted, sources said.

JLR primarily manufactures its vehicles in Britain, Europe, and China but assembles some models, such as Range Rover SUVs, at Tata’s Pune plant in Maharashtra.

Tata’s EV division had planned to finalise supplier contracts by January but is now making design changes as the financial viability of the plan has been affected by JLR’s decision, two sources said.

In January, Tata pushed back the launch of the Avinya EV to 2026-2027 from an earlier target of this year. It remains unclear if the latest developments will cause further delays.

“As part of our rigorous product development process, we continuously evaluate key factors such as design, supply chain readiness, and unit economics to ensure a competitive and high-quality offering,” Tata said in its statement.

(With inputs from Reuters)

More For You

Modi & Trump

Donald Trump and Narendra Modi shake hands as they attend a joint press conference at the White House on February 13, 2025.

Reuters

India, US to discuss trade issues after tariff hike

INDIA and the United States will hold trade discussions in New Delhi on Tuesday, officials and Indian media reports said, as the two countries look to resolve a tariff dispute.

India currently faces high US tariffs on most of its exports and has not yet been able to reach a trade deal that would ease the pressure.

Keep ReadingShow less
Piyush Goyal

Piyush Goyal recalled that in February, Narendra Modi and Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025. (Photo: Getty Images)

Getty Images

Trade talks with US moving forward positively, says Indian minister Goyal

INDIA’s commerce and industry minister Piyush Goyal on Thursday said that negotiations on the proposed trade agreement between India and the United States, which began in March, are progressing in a positive atmosphere and both sides are satisfied with the discussions.

He recalled that in February, Indian prime minister Narendra Modi and US president Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025.

Keep ReadingShow less
Baiju Bhatt

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. (Photo: Getty Images)

Baiju Bhatt named among youngest billionaires in US by Forbes

INDIAN-AMERICAN entrepreneur Baiju Bhatt, co-founder of the commission-free trading platform Robinhood, has been named among the 10 youngest billionaires in the United States in the 2025 Forbes 400 list.

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. Forbes estimates his net worth at around USD 6–7 billion (£4.4–5.1 billion), primarily from his roughly 6 per cent ownership in Robinhood.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London. (Photo: Getty Images)
Getty Images

Economy shows no growth in July amid political turbulence

UK's ECONOMY showed no growth in July, according to official data released on Friday, adding to a difficult week for prime minister Keir Starmer’s government.

The Office for National Statistics (ONS) said gross domestic product was flat in July, following a 0.4 per cent rise in June.

Keep ReadingShow less
India’s IT sector

India’s $283 billion IT industry, which contributes more than 7 per cent to the country’s GDP, has for over three decades provided services to major clients including Apple, American Express, Cisco, Citigroup, FedEx and Home Depot.

iStock

India’s IT sector faces uncertainty as US proposes 25 per cent outsourcing tax

INDIA’s IT sector is facing uncertainty as US lawmakers consider a 25 per cent tax on companies using foreign outsourcing services.

Analysts and lawyers said the proposal has led to customers delaying or re-negotiating contracts, raising concerns in India, the world’s largest outsourcing hub.

Keep ReadingShow less