Jaguar Land Rover to Assemble Luxury Vehicles in Tamil Nadu with ₹9,000 Crore Investment by 2026

Published on June 26, 2025 | By Masala Mirror Team

In a landmark move for India’s automotive industry, Jaguar Land Rover (JLR), the luxury vehicle arm of Tata Motors, is set to begin assembling its premium vehicles at a state-of-the-art facility in Ranipet, Tamil Nadu, starting early 2026. Backed by a massive ₹9,000 crore investment over five years, this new plant marks a significant step in JLR’s expansion in India and Tata Motors’ ambition to position Tamil Nadu as a global hub for electric vehicle (EV) production. Here’s everything you need to know about this game-changing development.

A New Era for JLR in India

Tata Motors announced that the new facility in Ranipet, located near Panapakkam in the Ranipet district, will initially focus on assembling the Range Rover Evoque and Range Rover Velar SUVs using Completely Knocked Down (CKD) kits. The plant, spread across 470 acres with 70 acres dedicated to the CKD plant in its first phase, is expected to have an initial capacity of 30,000 units annually, with plans to scale up to over 250,000 units over the next five to seven years.

This marks the first time a premium vehicle will be fully manufactured in India, moving beyond the current assembly operations at JLR’s Pune facility, which produces models like the Range Rover Velar, Range Rover Sport, Evoque, Jaguar F-PACE, and Land Rover Discovery Sport from CKD units. Over time, JLR plans to migrate its Pune operations to the Ranipet plant, leveraging its strategic location near Chennai and Ennore ports for enhanced logistics and export potential.

₹9,000 Crore Investment and Economic Impact

The ₹9,000 crore investment, formalized through a Memorandum of Understanding (MoU) with the Tamil Nadu government in March 2024, underscores Tata Motors’ commitment to India’s growing luxury and EV markets. The facility is expected to create up to 5,000 direct and indirect jobs, with a focus on empowering women in the workforce, aligning with Tata’s broader vision of inclusivity. Tamil Nadu Chief Minister M.K. Stalin laid the foundation stone for the plant on September 28, 2024, emphasizing the state’s role as India’s automotive and EV capital, where 40% of the country’s EVs are manufactured.

The Ranipet plant is a key component of the ₹18,000 crore Chennai-Bengaluru Industrial Corridor, benefiting from enhanced connectivity via the Bengaluru-Chennai Expressway and the Dedicated Freight Corridor. This strategic location, approximately 90 km from Chennai, positions the facility as an export hub for JLR’s premium vehicles, with a significant portion of production targeted for global markets.

Focus on Electric Vehicles and Sustainability

The Tamil Nadu facility will prioritize the production of electric vehicles (EVs) based on JLR’s Electrified Modular Architecture (EMA) platform, which supports advanced driver assistance systems and cloud connectivity. This aligns with JLR’s global “Reimagine” strategy to transition Jaguar into an all-electric brand by 2026 and offer electric alternatives for most Land Rover models. The plant will also produce Tata’s premium EVs under the Avinya brand, though its launch has been delayed to 2026-2027 due to engineering challenges.

Tata Motors has emphasized sustainability, with the facility designed to use 100% renewable power. The company will leverage the supply ecosystems of Hyundai Motor India and Renault Nissan Automotive India, alongside its own suppliers, to build a robust component infrastructure and MSME cluster in Ranipet. This move is expected to strengthen Tamil Nadu’s position as a manufacturing hub.

Challenges and Strategic Shifts

Despite the ambitious plans, JLR has faced challenges. A March 2025 report suggested that JLR had scrapped initial plans for local EV manufacturing in India due to difficulties in achieving a price-quality balance for locally sourced EV parts and slowing global EV demand. However, recent updates confirm that JLR will proceed with CKD operations, focusing on models like the Evoque and Velar, with potential plans to include the Defender and Discovery in later phases.

Globally, JLR is navigating trade headwinds, including a 27.5% US import tariff on vehicles from the UK, prompting a focus on markets like the UK, Europe, and the Middle East. The Tamil Nadu plant is part of JLR’s strategy to mitigate these challenges by enhancing supply chain resilience and localizing production. Tata Motors’ Group CFO, P.B. Balaji, noted that the facility provides a “scalable, future-ready base” for JLR’s expansion in India.

Why This Matters for India

The Ranipet facility is a milestone for India’s automotive sector, marking the first time a premium brand like JLR will manufacture vehicles entirely in the country. It strengthens India’s position in the global luxury car market, which is growing due to rising demand for high-end SUVs. The project also aligns with the “Make in India” initiative, boosting exports and creating economic opportunities in Tamil Nadu.

Tata Motors’ broader strategy includes a ₹33,000-35,000 crore investment by 2030 to capture 18-20% of India’s passenger vehicle market, with a focus on high-end SUVs and software-defined vehicles. The delay in the Avinya EV launch highlights engineering hurdles, but the company remains committed to its electrification goals.

What’s Next?

With construction underway since September 2024, the Ranipet plant is on track to become operational by late 2025 or early 2026. The initial phase will focus on CKD assembly, with plans to expand into full-scale manufacturing of EVs and other next-generation vehicles. Industry experts estimate that the facility could produce up to 300,000 units over the next decade, with two-thirds allocated to JLR and one-third to Tata Motors.

As Tamil Nadu solidifies its status as a hub for premium automotive manufacturing, the JLR plant is set to redefine India’s role in the global luxury car market. Stay tuned to Masala Mirror for the latest updates on this transformative project and its impact on India’s economy.

Keywords: Jaguar Land Rover, Tamil Nadu, Ranipet plant, ₹9,000 crore investment, Range Rover Evoque, Range Rover Velar, electric vehicles, Tata Motors, Make in India, Chennai-Bengaluru Industrial Corridor

Meta Description: Jaguar Land Rover to assemble luxury vehicles in Tamil Nadu with a ₹9,000 crore investment by 2026. Learn about the Ranipet plant and its impact at Masala Mirror.

Tags: JLR Tamil Nadu, Tata Motors, luxury vehicles, electric vehicles, Ranipet facility, Tamil Nadu investment, automotive industry, Make in India, 2026