The Panapakkam plant is Tata Motors’ first new location since the devastating cyberattack that befell JLR in 2025. By Stewart Burnett
Jaguar Land Rover will begin assembling the Range Rover Evoque at a newly-constructed Tata Motors factory in Tamil Nadu, India, on 9 February, accelerating a shift to relocate production and capture surging domestic demand for premium vehicles. The US$994m Panapakkam plant is Tata Motors’ first new location since the cyberattack that devastated subsidiary JLR in August 2025.
The site, designed for an annual capacity of 250,000 vehicles, will eventually absorb more JLR assembly currently handled at Tata’s existing plant in Pune. The move is part of a broader effort to centralise JLR’s Indian operations in a modern hub closer to major ports and suppliers. Initial output for the Evoque is expected to be under 10,000 units for the local market, although Tata intends to leverage the site further down the road for exports and producing electric vehicles.
The localised push comes as JLR navigates mounting headwinds in traditional strongholds. In China—once a primary profit driver for the premium automaker—sales are under pressure from hikes in consumption taxes and steep competition from local competitors that can offer comparable or superior luxury at a markedly lower sticker price. Over in the US, it continues to reckon with elevated tariffs on US imports, even in the wake of the trade deal struck between the US and the UK.
JLR also continues to reckon with the financial fallout of the costly 2025 cyberattack that disrupted its global production. Whether the automaker has implemented any substantial changes to its cyber security infrastructure, that may better protect it against future incidents, remains to be seen. The incident halted JLR’s global production for around six weeks, after which a phased return to production was announced.
While the Indian passenger car market is small relative to its bustling two and three-wheeler segment, premium SUVs are a highly popular product within this segment. By expanding its domestic manufacturing footprint, JLR aims to price competitively against German competitors Mercedes-Benz, BMW and Audi in this segment. Tata acquired JLR from Ford back in 2008, and first began local assembly in 2011 to bypass steep import duties.
Tata’s local assembly of the JLR portfolio has expanded over the years 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, signalling a growing confidence in India’s appetite for high-end vehicles and manufacturing capabilities.
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 per year. The new Tamil Nadu facility was completed in approximately 16 months after the foundation stone was laid in September 2024. The plant will start with CKD assembly, meaning that kits are imported and assembled locally to bypass India’s high import duties on fully built cars.
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