Tata Motors Starts JLR Vehicle Assembly in Chennai Next Week

Tata Motors announced on Friday that it will commence local assembly of Jaguar Land Rover (JLR) vehicles at its state-of-the-art Panapakkam facility near Chennai, starting February 9, 2026. This milestone marks the operational launch of the Rs 9,000 crore plant, first revealed in 2024, with an ambitious annual capacity of up to 250,000 units. Designed for flexibility, the facility will initially focus on premium JLR models while preparing for electric vehicle production, boosting Tata's luxury segment presence in India.

The Panapakkam plant spans cutting-edge infrastructure, including adaptable manufacturing lines capable of handling both internal combustion and electric powertrains. Once fully operational, it promises over 5,000 direct jobs and thousands more in the supply chain, injecting economic vitality into Tamil Nadu. Though current luxury demand is modest, the excess capacity positions Tata for exports to Southeast Asia and the Middle East, aligning with global JLR growth strategies.

Speculation points to the Range Rover Evoque as the first model off the line, leveraging cost-effective completely knocked down (CKD) assembly to undercut import duties. Tata officials, including a spokesperson named Chandra, confirmed the Evoque's likely debut but withheld specifics on timelines or additional models like the Discovery Sport or Velar. This move builds on Tata's ownership of JLR since 2008, enhancing localization to make premium SUVs more affordable for Indian buyers.

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Currently, JLR CKD assembly happens at Tata's Pune plant, but Panapakkam introduces a dual-site strategy without immediate shifts. Chandra noted that Pune operations continue uninterrupted, allowing Tata to scale production dynamically based on demand. This redundancy ensures supply chain resilience amid rising global chip shortages and logistics challenges.

The initiative supports India's 'Make in India' push, potentially reducing JLR vehicle prices by 10-15% through local value addition. It also teases future JLR EVs, like the electric Range Rover, aligning with Tata's EV ambitions via its own Nexon EV success. As competitors like Mercedes and BMW localize, Tata gains a competitive edge in the Rs 50,000 crore luxury market.

This expansion cements Tata Motors' transformation from commercial vehicles to global luxury players, with Panapakkam as a cornerstone for innovation and exports.

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