Balaji acknowledged the need for a second production location for JLR outside its existing facilities, stating, “Another manufacturing base is needed for JLR, and India makes sense.”
21 Mar 2025 | 4825 Views | By Ketan Thakkar
Tata Motors continues to explore local manufacturing options for JLR in India, with ongoing discussions regarding the viability of establishing a second manufacturing base, says P.B. Balaji, the company's Group Chief Financial Officer.
While some projects have temporarily been put on hold, the company leadership affirms that localisation remains ...
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Tata Motors continues to explore local manufacturing options for JLR in India, with ongoing discussions regarding the viability of establishing a second manufacturing base, says P.B. Balaji, the company's Group Chief Financial Officer.
While some projects have temporarily been put on hold, the company leadership affirms that localisation remains on the table, in line with JLR’s long-term strategy.
In an interview with Autocar Professional, Tata Motors’ Group CFO, P.B. Balaji, confirmed that the company is actively evaluating opportunities for JLR’s India production footprint. “Yes, it continues to be explored. We started with the CKD (completely knocked down) assembly of the Range Rover and Range Rover Sport. Similarly, other possibilities will continue to be assessed,” Balaji said.
According to several sources familiar with the matter, Jaguar Land Rover has initiated discussions to produce the new Evoque, locally codenamed L383, under a project codenamed “Solar.”
Sources indicate that while the project has been shelved for now, another project could be revived at a later date. The move is critical for Tata Motors, as it would benefit from JLR’s localised EMA (Electrified Modular Architecture) platform for its Avinya range of cars, ensuring its competitive positioning.
Declining to get into specific projects or products, Balaji emphasized Tata Motors’ agility in decision-making, stating, "At some point, management must be allowed to do its job. All options are on the table, and the world is constantly evolving. Options can be considered, adjusted, or postponed based on what is right. It is not about taking one stance and sticking to it indefinitely. If all options are available, discussions can continue."
Tata Motors signed a Memorandum of Understanding (MoU) with the Government of Tamil Nadu precisely a year ago to explore setting up a vehicle manufacturing facility in the state.
The MoU envisions the company investing Rs 9,000 crore over a five-year period, which can potentially create up to 5,000 direct and indirect jobs.
It will be a multi-powertrain plant, which means it will manufacture both electric vehicles and conventional internal combustion engine (ICE) vehicles for JLR and Tata Motors.
Close on the heels of its acquisition of Ford India’s factory in Sanand in 2022, Tata Motors' announcement of a new factory in Tamil Nadu in 2024 took many by surprise.
Autocar Professional had exclusively reported in April 2024 that Tata Motors would utilize the Tamil Nadu facility to produce and export JLR vehicles from its proposed factory. The Chief Minister, M.K. Stalin, laid the foundation stone in September 2024.
With JLR’s global annual sales currently at 400,000 units, down from 600,000 previously, the company is not constrained by capacity but is strategically considering India as a potential manufacturing base.
Balaji acknowledged the need for a second assembly-cum-production location for JLR outside its existing facilities in India, stating, “Another assembly base (outside of Chikhale, Pune) is needed for JLR, given the potential growth for the brand in the country.”
The idea would be to cater to the domestic market to begin with and eventually use it as an export hub for future models.
Industry insiders note that Tata Motors’ ability to adapt to market conditions quickly will play a key role in shaping JLR’s localisation strategy in India. The potential move could strengthen JLR’s position not only in the Indian luxury vehicle market but also enhance cost efficiencies and supply chain synergies for the Tata Group’s automotive division.
To be sure, Tata Motors and JLR have already signed a Memorandum of Understanding (MoU) to utilize the EMA architecture for the Avinya range of cars. With the Solar project being put on hold, it will be interesting to see if there are any potential delays in the launch of Avinya-branded premium EV cars.
The earlier plan was to launch Avinya in the calendar year 2026, but the timelines are likely to be adjusted by several quarters, given that JLR's plans have been deferred.
Sources indicate that Tata Motors is likely to proceed with the EMA architecture for its future Avinya models. Still, it is expected to be tailored or Indianised to accommodate Indian cost structures.
There are three key elements of the JLR EMA architecture – the mechanical underbody, which serves as the skateboard; the electrical and electronic architecture on top of it; and the SDV element of the ground-up architecture. Given the price point for Tata Motors, the company will selectively incorporate aspects of EMA into its future EVs,” said people familiar with the matter.
As discussions progress, the Indian auto component industry remains vigilant about Tata Motors' next steps in expanding JLR's footprint in India.
Jaguar Land Rover currently has manufacturing facilities in the UK, the European Union, and China. The US is a critical base with significant volumes, although the company does not have a manufacturing facility there.
Given the current disruption in tariff conversations from US President Donald Trump, the company may be keeping its options open for that market.