5 Sept 2024
After years of exploring synergies, Tata Group companies Tata Motors and Jaguar Land Rover (JLR) have finalized plans to manufacture JLR’s electric vehicles in India for global markets. This marks a major milestone in the group’s automotive business, according to Natarajan Chandrasekaran, chairman of Tata Sons, the holding company of Tata Group, including Tata Motors, in an interview with Autocar India.
After years of exploring synergies, Tata Group companies Tata Motors and Jaguar Land Rover (JLR) have finalized plans to manufacture JLR’s electric vehicles in India for global markets. This marks a major milestone in the group’s automotive business, according to Natarajan Chandrasekaran, chairman of Tata Sons, the holding company of Tata Group, including Tata Motors, in an interview with Autocar India.
Chandrasekaran mentioned JLR’s Electrified Modular Architecture (EMA) platform, noting that two different models will be produced in India—one from JLR and one from Tata Motors. He added, “We will also be exporting JLR cars from Sanand.”
The Sanand plant in Gujarat was selected as the manufacturing hub, especially since Tata Motors’ EMA-based Avinya car, which is expected to have global appeal, will also be produced there.
“Tata Motors will discuss their export plans in the next 12 months. We have bigger ambitions for JLR and Tata Motors,” he added, without revealing further details on which products will be jointly produced on the EMA platform.
India is set to become a key global manufacturing hub for JLR, complementing existing capacities in the UK, China, and Eastern Europe, with a strong focus on electric vehicles.
Why Sanand is the Ideal Location for JLR Manufacturing in India
Chandrasekaran emphasized the importance of fostering a culture of openness and innovation to explore new opportunities. “We can combine Tata Motors’ cost efficiency with JLR’s design and sophistication. If we achieve that, we’ll be in a great position. This synergy offers benefits in two ways—cost and sophistication—leading to higher volumes, which justifies the investment in the [EMA] platform,” he explained.
He further noted that it may not be feasible for Tata Motors to make this investment alone, and JLR's volumes may not be sufficient either. “We’re talking about not only the platforms but also the electric and electronic (E/E) architecture,” he added.
Sanand becomes a natural choice for manufacturing due to Tata Group’s strong focus on vertical integration, which helps keep costs down. Additionally, the group's battery production facility, Tata Agratas, is being set up in Gujarat, further enhancing the location's appeal.
The proximity to Mundra Port and access to locally made batteries in Gujarat boost the EMA platform’s competitiveness.
There is also speculation that Tata Motors may establish a dedicated JLR plant in Tamil Nadu, though no official announcement has been made. In March, Tata Motors signed an agreement with the Tamil Nadu government to explore setting up a vehicle manufacturing facility, involving a potential investment of Rs 9,000 crore over five years, though details remain unspecified.
Heavy Investments in Electric Mobility
Tata Motors, through Tata Passenger Electric Mobility (TPEM), has committed to investing several billion dollars in EVs by the end of the decade. JLR, meanwhile, has outlined a capital expenditure plan of over £15 billion (approximately Rs 1.5 lakh crore) over the next five years.
In November, TPEM and JLR—both wholly owned subsidiaries of Tata Motors—signed an agreement for licensing the EMA platform. This agreement includes royalties for the use of the electrical architecture, electric drive unit, battery pack, and manufacturing expertise, to develop TPEM’s premium electric vehicle (EV) series ‘Avinya’ on the same platform.
TPEM and JLR will also enter into an Engineering Services Agreement to support TPEM's specific content requirements for vehicle development.
When the agreement was announced, Tata Motors revealed that JLR’s EMA platform would underpin the next generation of pure electric mid-sized SUVs for global markets, set for launch in 2025.
Tata Motors’ CFO, PB Balaji, stated that the EMA platform will be used for Tata’s upcoming premium range of EVs, based on the Avinya concept. This concept represents more than just a car—it’s an architecture designed to support an entire family of EVs.
First unveiled in 2022, the Avinya concept reflects Tata Motors’ vision for future electric mobility, offering a class-leading in-cabin experience with next-generation connectivity, advanced driver assistance systems (ADAS), performance, refinement, and safety.
Access to JLR’s EMA platform will accelerate TPEM’s entry into the premium EV segment, reducing both development time and costs. JLR’s advanced E&E architecture, capable of L2+ autonomy, includes cutting-edge connectivity, comfort, and convenience features. It will also speed up TPEM’s adoption of Software over the Air (SOTA), Features over the Air (FOTA), and safety standards (5 Star Euro NCAP Rating), as well as ultra-fast charging technology for high-performance vehicles.
The detailed article published by www.autocarpro.in can be accessed from https://www.autocarpro.in/news/jlr-to-make-in-india-for-the-world--122424
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