Jaguar Land Rover (JLR), owned by Tata Motors, has put its electric vehicle (EV) production plans on hold at a new factory in Tamil Nadu, India. A report from Reuters, citing two sources, broke the news on March 10, 2025. This shift raises questions about JLR’s EV strategy in India, a key market for growth. Here’s what’s happening and why it matters.
A Sudden Pause
JLR won’t start producing EVs at the planned $1 billion plant in Tamil Nadu, at least for now. The factory, announced in March 2024 with a Rs 9,000 crore investment, was set to build luxury JLR models, including EVs. But the company has delayed those plans. It’s unclear which models were targeted or when production might resume. Tata Motors declined to comment, calling it speculation, according to the report.
Why the Delay?
Several factors could be at play. Market conditions, EV demand, or supply chain issues might be holding things back. India’s EV market is growing, but challenges like high costs, infrastructure gaps, and consumer hesitancy could be influencing JLR’s decision. The Tamil Nadu plant was meant to strengthen JLR’s presence in India, the world’s third-largest auto market, but timing seems to be a hurdle.
JLR’s Global EV Push
Despite the pause, JLR is still committed to EVs worldwide. By the end of the decade, its Range Rover, Discovery, and Defender brands will offer pure-electric options, while Jaguar will go fully electric. JLR’s Halewood plant in the UK will become its first all-electric production site. Solihull, also in the UK, will build electric Range Rover, Range Rover Sport, and Jaguar models. The India delay doesn’t derail this global shift, but it slows expansion here.
Key Highlights
- Investment: Rs 9,000 crore ($1 billion) for the Tamil Nadu plant, announced in March 2024.
- Delay: EV production plans paused, with no timeline for resumption.
- Global Goals: JLR targets all-electric options for Range Rover, Discovery, and Defender, and a fully electric Jaguar by decade’s end.
- Market Context: India is the world’s third-largest auto market, but EV adoption faces challenges.
What This Means for India
India’s auto industry is watching closely.JLR’s closure may be a warning sign about EV demand or domestic country manufacturing expenses. The company views India as a growth hub, and Tata Motors acquired JLR in 2008. That vision included the Tamil Nadu facility as a plan to produce JLR cars locally for domestic and international markets. This setback might delay those plans but not scuttle them.
JLR is not the only one to rethink EV plans. Global carmakers are shaken by EV slowdowns as a result of expensive prices, charging infrastructure shortages, and changing consumer tastes. In India, Tata Motors remains ahead of EVs with its own offerings, but JLR’s luxury bias makes it more difficult. The break underscores the difficulty of scaling EVs in a price-conscious market.
JLR’s next steps will be significant. For now, the Tamil Nadu factory waits, and India’s EV story keeps evolving.
