Jaguar Land Rover (JLR), the British luxury automotive brand owned by Tata Motors, is set to begin assembling its premium vehicles from completely knocked down (CKD) kits at a new manufacturing plant in Tamil Nadu by early 2026, according to senior executives from Tata Motors during a recent press briefing. In contrast, the launch timeline for Tata Motors’ flagship electric vehicle brand, Avinya, has been pushed back by a year due to technical and feasibility-related setbacks.
JLR intends to invest around ₹9,000 crore over the next five years in Tamil Nadu, signaling a strategic shift in its local production plans. Initially, the factory will produce the Range Rover Evoque and Velar SUVs, targeting an annual output of 30,000 units.
Eventually, JLR’s operations currently located in Tata Motors’ Pune facility will be relocated to Ranipet, which will allow for improved scale and streamlined logistics, said PB Balaji, Chief Financial Officer of Tata Motors.
“This move gives us a scalable, future-ready base as JLR expands its portfolio in India,” said Balaji. He also noted that the facility is likely to play a key role in Tata’s high-end EV plans, including models under the Avinya brand, positioning it as a central manufacturing site for both Tata and JLR.
The timing of this announcement coincides with growing expectations that an India-UK Free Trade Agreement (FTA) will reduce import duties on both vehicle components and fully assembled cars. While the FTA could make car imports more cost-effective, establishing CKD assembly within India is viewed as a strategic buffer to maintain cost controls and regulatory adaptability.
As for Avinya, Tata Motors is now targeting a 2026 launch instead of its previously expected debut in 2025.
“In 2022, we were optimistic that we could bring Avinya to market in two-and-a-half years,” said Shailesh Chandra, Managing Director of 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 further explained that Avinya will operate as an independent luxury EV brand, distinct from Tata branding, aimed at addressing international demand for premium electric mobility.
He also raised concerns regarding inconsistent policies, especially at the state level, where incentives are 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.”
Addressing the influence of global trade tensions and rising tariffs on JLR’s operations, Balaji mentioned that Tata Motors is actively working to respond to international market pressures. This includes stimulating demand across priority regions and launching efficiency drives to counterbalance tariff-related cost increases.
“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.
JLR continues to grapple with high import duties, including a 27.5% tariff in the United States, which also affects vehicles exported from its plant in Slovakia.
To protect profitability, Tata Motors has rolled out a cost-reduction initiative with the objective of regaining JLR’s 10% EBIT margin within the next 12 to 18 months.
Balaji ruled out setting up a manufacturing base in the US at this time, stating that JLR would avoid overcommitting itself amid ongoing global trade uncertainty.
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