JLR to begin car assembly in Tamil Nadu by 2026; Tata Motors delays Avinya EV launch

Time of India

10 hours ago

British auto maker
Jaguar Land Rover
(JLR) will start assembling its luxury vehicles from completely knocked down (CKD) kits at its upcoming factory in Tamil Nadu by early 2026, said senior executives at parent
Tata Motors
on Tuesday. However,
Tata Motors
has deferred the launch of its flagship Avinya brand of
electric vehicles
(EVs) by a year due to engineering and feasibility challenges, the executives told a media briefing.
JLR plans to invest about Rs 9,000 crore over five years in Tamil Nadu, marking a strategic realignment for the company's domestic manufacturing footprint. The automaker will initially assemble the
Range Rover Evoque
and Velar SUVs, with a planned annual capacity of 30,000 units.
Eventually, it will also see JLR move operations from Tata Motors' existing facility in Pune to Ranipet, enabling better scale and logistical synergies, said PB Balaji, Group CFO, Tata Motors.
'This move gives us a scalable, future-ready base as JLR expands its portfolio in India,' said Balaji. The site is also expected to serve as a potential base for Tata's premium EV production, including vehicles under the Avinya brand, making it a critical hub for both Tata and JLR operations, he said.
The announcement comes amid expectations of the
India-UK Free Trade Agreement
(FTA) easing tariffs on imported auto parts and fully-built vehicles. While the FTA may improve the economics of importing cars, local CKD assembly is viewed as a strategic hedge to control costs and keep regulatory flexibility.
Tata Motors, however, is now looking at a 2026 timeline—instead of 2025—for the market debut of Avinya, its much-anticipated premium electric offering.
'In 2022, we were optimistic that we could bring Avinya to market in two-and-a-half years,' said Shailesh Chandra, MD – Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility. 'But feasibility issues in certain subsystems and architectural layers meant we needed more engineering time. Some blind spots emerged during execution, and the industrialisation process has taken longer than expected.'
Chandra clarified that Avinya will be launched as a standalone
premium EV brand
, without overt Tata branding, aimed at tapping global demand for high-end electric mobility.
Meanwhile, he also flagged policy concerns, especially state-level incentives being extended to hybrid vehicles. 'These distort the market and delay EV adoption,' Chandra said. 'There needs to be policy clarity and consistency. Incentives that favour hybrids over EVs risk undermining the national electrification vision.'
Commenting on the impact of geopolitical tensions and tariff wars on JLR, Balaji said Tata Motors is stepping up efforts to manage global headwinds for JLR by activating demand in key markets and launching a cost-cutting drive to offset tariff-related pressures.
'We're dialling up market activation around Range Rover, Range Rover Sport, and Defender to tap recovery in the UK and stable demand in the US, Europe, and the Middle East,' he said.
On the cost side, JLR continues to face 27.5% import tariffs in the US, with duties also applying to vehicles sourced from its Slovakia plant.
To mitigate margin pressure, Tata Motors has started a cost-out programme aimed at restoring JLR's 10% EBIT margin over the next 12–18 months.
Balaji ruled out any immediate plans for a US manufacturing site, saying JLR would avoid overextending itself in uncertain trade conditions.