Tata Motors to start assembling Range Rover Evoque in its new India plant

Jaguar Land Rover will begin assembling the Range Rover Evoque at a new factory in southern India on Feb. 9, accelerating a shift to relocate production and capture surging domestic demand for luxury cars.

The first vehicle will roll out from parent Tata Motors Passenger Vehicles Ltd.’s 90 billion-rupee ($994 million) Panapakkam plant in Tamil Nadu, people familiar with the plans said.

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The site, expected to become a hub for its premium cars, will eventually absorb more JLR assembly that’s currently handled at Tata’s Pune plant, the people said, asking not to be identified discussing confidential business details. It is designed for an annual capacity of 250,000 vehicles.

The move seeks to centralize JLR’s Indian operations in a modern hub closer to major ports and suppliers, the people said. While initial output for the Evoque is expected to be under 10,000 units for the local market, Tata plans to eventually leverage the site for exports, they added.

A representative for Tata Motors declined to comment on the opening date of the new plant.

The localized push comes as JLR navigates mounting headwinds in its traditional strongholds. In China, once a primary profit driver, sales are pressured by higher consumption taxes and fierce competition from domestic EV rivals. Simultaneously, the marquee is grappling with elevated US import tariffs and the financial fallout of a 2025 cyberattack that disrupted global production.

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India remains a rare bright spot for high-end SUVs. Tata, which acquired JLR from Ford Motor Co. in 2008, began local assembly in 2011 to bypass steep import duties. By expanding its domestic manufacturing footprint, JLR aims to price competitively against German competitors Mercedes-Benz Group AG, BMW AG and Volkswagen AG’s Audi.

Over the years, Tata’s local assembly of JLR portfolio has expanded to include the Evoque, Range Rover Velar, Discovery Sport and Jaguar F-Pace. In late 2024, the company added the larger and higher-priced Range Rover and Range Rover Sport to the lineup, a sign of confidence in India’s appetite for high-end vehicles and manufacturing capability.

Tata Motors currently produces passenger vehicles at its Pune facility in Maharashtra and Sanand plant in Gujarat, with a combined annual capacity of about 900,000 units a year, which is scalable to over 1 million units.

Shares of the company slipped nearly 3% in Mumbai during trading on Thursday. It’s reporting quarterly earnings later in the day.