JLR Suspends India EV Production: Tata's Avinya Launch Faces Delay

Jaguar Land Rover (JLR) has halted its plans to manufacture electric vehicles at Tata Motors' new $1 billion facility in India. This decision is due to difficulties in sourcing EV components locally at competitive prices and a slowdown in EV demand. This move is expected to delay Tata Passenger Electric Mobility's Avinya EV model launch, previously postponed to 2026-2027. The factory, designed for 250,000 vehicles annually, initially planned for JLR to manufacture over 70,000 EVs. Tata stated that production schedules will align with strategic and market needs. JLR held discussions in Mumbai about sourcing components, but these talks have been suspended. The British luxury car unit was unable to find the right price-quality balance for locally sourced EV parts, adding that 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 and as governments ease timelines to meet emission rules and EV sales targets.