JLR shelves plans to build EVs at India plant: report

British luxury automobile manufacturer Jaguar Land Rover (JLR) has shelved plans to build electric vehicles (EVs) at parent Tata Motors Ltd’s upcoming $1 billion factory in southern India, Reuters reported, citing four people with knowledge of the matter.

JLR was unable to find the right price-quality balance for locally sourced EV parts, the report said, citing three of the four people mentioned above, adding that the decision also reflects slowing demand for EVs.

Automakers globally are scaling back their electrification plans on tight competition from multiple Chinese firms, as well as growing demand for hybrids.

JLR’s decision may also delay plans by Tata’s local EV unit, Tata Passenger Electric Mobility, to roll out the first of its premium Avinya models, the reported added.

Production timelines and choice of models to be built at the new factory in Tamil Nadu “will be aligned with Tata and JLR’s broader strategy and market requirements,” Tata told Reuters in a statement.

Tata had begun building the factory, which will also assemble other vehicles, in September, with the plant claiming an annual manufacturing capacity of over 250,000 cars in about seven years.

JLR has most of its production based out of Britain, Europe and China, but it assembles some cars like the Range Rover sport utility vehicles (SUVs) at Tata’s plant in Pune, Maharashtra.

Tata had in January pushed back the launch of its Avinya EV to 2026-27 from an earlier plan for this year.