Tata Explores Importing Jaguar Land Rover EVs and Considers Tennessee Plant for Production

Tata Motors is planning to import luxury electric cars from its subsidiary Jaguar Land Rover (JLR) under a new government policy. The policy, announced in March, reduces import taxes for companies that agree to set up local manufacturing facilities. Tesla is also expected to start importing cars to India under this policy, but Tata may be the first local carmaker to do so.

According to two Indian government sources, Tata is considering importing JLR electric vehicles and also establishing a $1 billion manufacturing plant in Tamil Nadu. The policy cuts import taxes to 15% from as high as 100% on certain EV models, but requires a minimum investment of $500 million and the establishment of a domestic factory within three years.

Tata had initially opposed the lowering of duties, but is now exploring the possibility of applying for incentives under the EV policy. The company is in discussions with JLR about importing EVs from the UK and manufacturing JLR cars in India. The specifics of which JLR models will be produced in India are still unknown.

Industry representatives including Hyundai, Volkswagen, BMW, and Tesla recently met with government officials to finalize the framework of the policy. The Indian government aims to increase the use of electric vehicles, with EVs accounting for about 2% of total car sales in 2023 and a target of 30% by 2030. Despite slowing demand in other markets, Tata continues to dominate India’s small but growing EV market.

Overall, Tata’s decision to import JLR electric cars under the new policy could pave the way for increased adoption of electric vehicles in India’s automotive industry. The company’s plans to invest in local manufacturing demonstrate a commitment to sustainability and innovation in the sector.