Manufacturers have been seeking a new haven where the conducive tariffs and government duties can allow them a more enabling environment for manufacturing. In a similar pursuit, Land Rover, Jaguar was also planning to begin their EV Production in India. But in a recent news update it has become apparent that the brand could not find the right price – quality balance for locally sourced EV parts. The decision of manufacturing in India has been further plagued by slowing demand for electric cars.
Most global brands have been rethinking their electrification plans amid the slow sales as well as the stiff competition from Chinese manufacturers. Several brands have shifted their focus from all-out EV’s to HYBRID vehicles manufacturing. The decision as per a report from Reuters would supposedly also impact the production of the Tata Passenger Electric mobility, it would impact the workings of Tata’s local electric car unit to launch the first premium Avinya models and other EV projects that were in the timeline.
Initial Plans
As per the initial plans the cars were to be built on the same platforms as the JLR’s electric vehicles and some components that were to be sourced jointly by the brand. Following the pursuit of the plans Tata had begun the construction of a new factory, which would allow the assembly of vehicles other than EV’s, in September. The Plant was slated to produce over 250,000 cars a year and would have reached the full capacity in about 5 to 7 years.
As per the shared plans JLR were to manufacture more than 70,000 electric cars there and Tata’s EV unit were to build 25,000 the sources said.
Why Plans Did Not Work Out
It was is in November that JLR hosted a meeting with local suppliers in Mumbai and shared details of its plans to source locally produced components. The brand could not get a hold of the balance of quality and prices they were looking for and hence the talks of JLR manufacturing in India seemingly have been quashed as of yet.
The sources that reported to Reuters said that it was planning to order some of its suppliers by the end of January. But as per the news, The designs and economics of the plans are not working without JLR.
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