Tata Motors and JLR to manufacture electric vehicles in India for the entire world: Chandrasekaran | Company News

Tata Motors and Jaguar Land Rover (JLR) will make electric vehicles (EVs) in India for global markets, Tata Sons chairman N Chandrasekaran said, highlighting how the group wants to use the brands’ “cost-effectiveness” and sophistication to hit a “sweet spot”.

Tata Motors and JLR have been exploring synergies for years and have finalised plans to manufacture electric vehicles in India, he told website ‘Autocar’ in a recent interview.

Chandrasekaran said there will be two different models of JLR’s electrified modular architecture (EMA) platform in India – one from each of the two automakers. “We will also export (JLR cars) from Sanand (in Gujarat).”

Without divulging further details, Chandrasekaran said the two companies have “bigger aspirations” and Tata Motors will discuss its exports in a year.

Sanand, where Tata Motors has acquired the erstwhile Ford Motors facility, is likely to manufacture the first car based on the EMA platform. The car, called the Avinya, is expected to be manufactured for global markets besides being sold in India.

JLR has manufacturing plants in the United Kingdom (UK), sites in Europe and China and has outlined a plan for electrification. Tata Motors’ FY24 annual report said the new EMA and Jaguar Electrified Architecture will be introduced from 2025 as the company transitions to an electric-first business that will have all its brands offering purely electric options by 2030. The company’s plants around the world will be reconfigured – Merseyside, UK, will become the first all-electric manufacturing facility and Solihull will make electric Jaguars, followed by JLR’s plant in Nitra, Slovakia, will be upgraded to produce electric vehicles by 2030.

JLR is working with partners and suppliers to reduce emissions by 46 per cent across its own operations and 54 per cent per vehicle across its value chain.

“We can combine Tata Motors’ cost attitude with JLR’s design and sophistication. If we can do that, we will be in a privileged position. Then you get the benefit, which accrues in two different ways, and volumes go up, which justifies the investment in the (EMA) platform,” Chandrasekaran said.

Tata Motors alone will not be able to make such an investment and JLR’s volumes may not be sufficient. “We are not just talking about platforms, but also about the electrical and electronics (E/E) architecture.”

Apart from Sanand, another manufacturing hub for exports could be a new project being built in Tamil Nadu for Rs 9,000 crore and expected to be a joint venture facility for Tata Motors and JLR. Announcements are likely to be made later this month.

Tata Passenger Electric Mobility has committed investments of more than a couple of billion dollars in electric vehicles through the end of this decade. JLR has outlined a capital expenditure (capex) roadmap of more than 15 billion pounds over the next five years.

Chandrasekaran said the slowdown in EV sales is temporary and cyclical. FY25 has been a tough year for Tata Motors’ EV sales. In the first quarter of FY25, while Tata Motors’ PV wholesale sales fell 1.1 per cent, EV volumes (16,600 units) declined 13.9 per cent due to sharp decline in the fleet segment.

“If we have to do something in India, electric vehicles should be the priority because we have the highest number of polluted cities in the world. As many as 14 out of 20 (such cities) are in India. So, if we have to solve this problem, across all our businesses, we have to make a change,” he said, adding that by 2030, the penetration of electric vehicles in Tata Motors’ sales would be 30 per cent.

Chandrasekaran said the entire Tata Group, and not just Tata Motors, is shifting its strategy towards green energy. “We have also decided that at Tata Power we will not invest in coal. All our capital expenditure will be on renewable energy.”

First published: September 17, 2024 | 14:03 IS