Tata Plans $1 Billion Investment To Build JLR Cars In India: Reports

Tata Motors, the parent company of Jaguar Land Rover (JLR), is reportedly planning to invest $1 billion in constructing a new plant in Tamil Nadu, India. Media reports suggest this facility will manufacture JLR EVs, marking the first instance of such production in India. Details regarding which JLR models will be manufactured at the new Indian factory have not been disclosed at this time. However, Tata Motors has refuted the media claims, "The media reports are speculative. As a policy and practice, we don't comment on speculation," in response to Acko Drive's query.

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The production from this plant is intended for both domestic sales and export markets, as per media reports. While the company announced its intentions to establish the Tamil Nadu plant in March, details regarding the specific vehicles to be manufactured and the plant's production capacity were not disclosed at that time.

JLR currently operates three car factories in the United Kingdom, in addition to facilities in China, Brazil, and Slovakia. In India, where it markets models such as the Range Rover Evoque, Discovery Sport, and Jaguar F-Pace, JLR remains a niche brand. Vehicles sold in India are either imported as fully built units from Britain or assembled from imported parts at a facility near Pune.

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Despite its relatively limited presence in India, JLR plays a significant role in Tata Motors' financial performance, contributing approximately two-thirds of the company's revenue. In the fiscal year ending March 2023, Tata Motors reported its first annual profit in five years, largely attributed to strong demand for Range Rover SUVs and Jaguar saloons.

Globally, JLR witnessed a notable increase in retail sales, with a 22 per cent surge to nearly 432,000 cars in the last financial year. However, in India, where it competes with established luxury brands like Mercedes-Benz and BMW, JLR's sales remain modest, totalling just 4,436 units. Nevertheless, this represented an 81 per cent growth compared to the previous year, driven by increasing demand for luxury products.