Jaguar Land Rover Shelves EV Plans for New Tata Factory in India

Jaguar Land Rover, JLR, has shelved plans to build electric vehicles at parent company Tata Motor’s upcoming $1 billion factory in southern India.

Four people with knowledge of the matter told Reuters the British luxury car unit was unable to find the right price-quality balance for locally sourced EV parts.

They say the decision also reflects slowing demand for electric cars.

Global car brands are revamping their electrification plans amid stiff competition from Chinese players, a shift in demand in favour of hybrids.

This, as governments ease timelines to meet emission rules and EV sales targets.

The sources said JLR’s decision is also expected to delay plans for Tata’s local electric car unit, Tata Passenger Electric Mobility, to launch the first of its premium Avinya models.

The cars are to be built on the same platform as JLR’s electric vehicles and some components were to have been jointly sourced.

Tata began construction of the new factory, which will also assemble vehicles other than EVs, in September.

The plant is slated to produce some 250,000 cars a year when it reaches full capacity in about five-to-seven years.

The shelved plans called for JLR to manufacture more than 70,000 electric cars there and Tata’s EV unit to build 25,000.