NEW DELHI: Tata Motors said on Tuesday that the specific models and production timelines at its upcoming Tamil Nadu plant will be aligned with the broader strategies and market requirements of Tata Passenger Electric Mobility (TPEM) and Jaguar Land Rover (JLR).
This statement follows reports that JLR has paused its plans to manufacture electric vehicles (EVs) at the facility. According to Reuters, JLR struggled to achieve the desired price-quality balance for locally sourced EV components. A supplier source revealed that all related work has been suspended for approximately two months.
However, Tata Motors clarified that the $1 billion greenfield facility in Ranipet will produce next-generation cars and sport utility vehicles (SUVs) for both Tata Motors and JLR. A company spokesperson stated that the plant, with an annual production capacity of over 250,000 vehicles, will cater to both domestic and international markets. Production will be ramped up progressively over the next 5-7 years to reach peak capacity.
“The specific models and production timelines will be aligned with TPEM and JLR’s broader strategy and market requirements while ensuring world-class quality and efficiency. We continue to explore ways to optimise supply chain both for Tata Motors and for JLR,” added the spokesperson.
In March 2024, Tata Motors unveiled plans to establish the Ranipet manufacturing unit with an investment of approximately Rs 9,000 crore. This move was seen as part of the Tata Group’s broader efforts to transition JLR into an EV-focused brand.
Meanwhile, Tata Motors’ CFO said during an analyst call that JLR is on track to achieve its Q4 EBIT margin guidance of 10% and will become net debt-free by the end of the fiscal year.
Looking ahead, Tata Motors expects India’s passenger vehicle (PV) volume growth in FY26 to be driven by the repositioning of the Curvv model and the launch of the Harrier EV and Sierra. Following this, Tata Motors’ shares surged by as much as 3.5% on the BSE on Tuesday, reaching an intraday high of Rs 672.