Tata Motors has been on the cusp of making a massive EV push in India with its latest Avinya range. It was set to launch earlier in 2026. The Avinya project is postponed. Why? Jaguar Land Rover (JLR) chose to back out of its partnership with Tata Motors for producing electric vehicles (EVs) in India.
What Went Wrong?
Tata Motors and JLR had in the past year agreed to make premium EVs together based on the Electrified Modular Architecture (EMA) platform. Tata was to use the same platform for the Avinya series, which will be a luxury EV brand for Tata Passenger Electric Mobility (TPEM). The collaboration was meant to reduce expenditure and allow improved technology sharing. Recent news reveals that JLR has completely abandoned its India EV manufacturing plans.
Why Did JLR Take a Step Back?
JLR was to manufacture EVs in Tata’s newly set-up Tamil Nadu plant. The plan was to localize part sourcing, but after a thorough market study, JLR found that local vendors could not meet its quality and price standards. Thus, the brand put everything on hold regarding manufacturing EVs in India.
According to industry sources, even JLR had organized supplier conferences in Mumbai last November, looking for local supply chains. But quality and cost concerns forced the company to rethink its strategy.
Impact on Tata’s Avinya Project
Tata’s Avinya models were going to be derived from JLR’s EMA platform. Some of the suppliers were already shortlisted to provide parts. However, with JLR opting out, Tata Motors will be required to redo the design of the Avinya.
Here’s what’s shifted:
- Launch Delay: Avinya was initially set to launch in 2026, but now it can take even more time.
- Design Overhaul: Tata Motors is shifting the Avinya line to cut out JLR tech dependencies.
- Higher Costs: Without JLR, economies of scale will be affected, and Avinya EVs will be expensive.
- Unsure Roadmap: Tata had planned five Avinya models, including a luxury SUV and a sporty five-door EV. Now, Tata is reassessing which models to prioritize.
| Tata Motors EV Plans | Status |
|---|---|
| Avinya EV Series (2026) | Delayed |
| Jaguar Land Rover EVs in India | Cancelled |
| Tamil Nadu EV Plant | On Track |
Stock Reaction of Tata Motors
Following the JLR announcement, Tata Motors shares declined by 2% on March 13, to ₹655 a share. The company already has lower overall sales, with the February data put out by the Society of Indian Automobile Manufacturers (SIAM) recording a 9% fall in Tata’s domestic sales.
| Tata Motors Sales (Feb 2025) | Figures |
|---|---|
| Total Domestic Sales | 77,232 units (-9%) |
| Passenger Vehicle Sales | 3.78 lakh (+1.9%) |
| Two-Wheeler Sales | Down 9% |
What’s Next for Tata Motors?
Tata Motors continues to pursue the Avinya project in spite of this failure. The company is pursuing alternative platforms for the EVs and re-jigging its production strategy. While there will be setbacks, Tata continues to proceed with its EV strategy.
Market experts continue to be divided:
- Nomura: Buy rating, target ₹861 per share
- Macquarie: Outperform rating, target ₹826 per share
- CLSA: High Conviction Outperform, target price ₹930 per share
- Nuvama: Downgrade rating, target price ₹720 per share
Now that the Tamil Nadu factory is on track, Tata Motors will have to replan its EV strategy without the contribution of JLR. Can Tata hit the Avinya deadline? Time will tell.
Stay tuned for more updates!