Tata plans to import Jaguar Land Rover EV and establish a manufacturing unit in TN

Under a new government programme that reduces import duties for businesses willing to set up local production, Tata Motors intends to import its luxury electric Jaguar Land Rover (JLR) vehicles, citing two Indian government sources, Hindu Business Line reported.

According to a report by Reuters, Tata's proposal, if it comes to pass, would make it the first local automaker to choose the strategy intended to encourage the usage of electric vehicles (EVs). Tesla is also anticipated to begin importing its cars to India and make an investment in the nation.

A representative for Tata declined to comment on what it called a speculation.

The proposal, which was unveiled in March, reduces import duties on select EV models from 100% to 15% provided an automaker spends at least $500 million and establishes a domestic facility within three years.

To save the home sector, Tata had first pushed the Indian government to refrain from lowering levies.

According to a third person who is aware of the company's plans, Tata and JLR are now talking about the prospect of applying for incentives under the EV policy, but discussions are still in the early stages.

"JLR (EVs) are something that Tata wants to import under this new policy," one of the two government sources—who wished to remain anonymous since the company's intentions are private—said.

Tata is preparing to build a $1 billion facility in the southern state of Tamil Nadu to produce JLR automobiles, even as it is solidifying its intentions to import JLR electric vehicles from the United Kingdom. It is still unknown which JLR car will Tata manufacture in this facility

According to the official, the Centre met with members of the auto sector on Thursday to start drafting the policy's structure.

Hyundai Motor Co., Vinfast, Volkswagen, BMW, Mercedes, Maruti Suzuki, Mahindra & Mahindra, Toyota Motor Co., and other companies were present at the conference. There was also a representative from Tesla.

India's developing and expanding EV industry is dominated by Tata. About 2% of all cars sold in 2023 were electric versions, with the government aiming for 30% by 2030, despite falling demand in important areas like the US and China.