Jaguar Land Rover has scrapped plans to manufacture electric vehicles at parent company Tata Motors' new $1 billion factory in Tamil Nadu, Reuters reported, quoting sources familiar with the matter.
The British luxury automaker struggled to achieve a satisfactory balance between price and quality for locally sourced EV components amid cooling global demand for electric vehicles, the news agency said.
"For India, all the work (on JLR electric vehicles) has stopped. Everything has been suspended since about two months," Reuters quoted a supplier source as saying, who requested anonymity due to the sensitive nature of the information.
The decision reflects a broader industry recalibration of electrification strategies worldwide, influenced by Chinese competition, shifting consumer preference toward hybrid vehicles, and relaxed government emission regulations, according to the report.
When approached for comment, Tata told Reuters that "production timelines and choice of models to be built at the new factory in the state of Tamil Nadu will be aligned with Tata and JLR's broader strategy and market requirements."
The decision comes as Tata, which currently leads India's emerging EV market, faces increasing pressure from competitors including JSW MG Motor, Mahindra & Mahindra, and Tesla, the news agency reported.