Tata Motors to leverage JLR platform for premium EV play | Mint
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Business News/ Companies / News/  Tata Motors to leverage JLR platform for premium EV play
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Tata Motors to leverage JLR platform for premium EV play

Tata Motor's intent behind the deal is to clearly be in the premium electric vehicle segment to stack up well against global competition.

TPEML is Tata Passenger Vehicle's (which is a unit of Tata Motors) sub-segment and JLR is another subsidiary of Tata Motors (Photo: Mint)Premium
TPEML is Tata Passenger Vehicle's (which is a unit of Tata Motors) sub-segment and JLR is another subsidiary of Tata Motors (Photo: Mint)

New Delhi: Tata Motors Ltd’s passenger electric vehicle subsidiary on Thursday said it will enter a strategic partnership with Jaguar Land Rover, the wholly-owned British luxury vehicle arm of the group, to leverage its electrified modular architecture (EMA) platform and develop its premium pure EV series, Avinya.

For the first time since the Tatas acquired JLR, the Indian passenger vehicle firm will be sharing the new platform and utilizing the strengths of JLR to fast-track the development of new vehicle types.

Tata Motors first showcased the Avinya concept, the company’s third-generation electric vehicle platform in 2022, but had not said that it might be utilizing the JLR platform to develop it. Tata Motors’ high-end sport utility vehicle, the Harrier, which uses an internal combustion engine, is built on Land Rover’s D8 platform.

The licensing deal between the parent and the British subsidiary, that involves a royalty payment to JLR, will cover various components, including the electrical architecture, electric drive unit, battery pack, and manufacturing expertise on EV batteries. Besides, Tata Passenger Electric Mobility (TPEM) and JLR will have an engineering services agreement to support TPEM’s needs of developing its first vehicle.

The move underscores Tata Motors’ growing focus on the mass-premium EV segment, which is set to become fiercely competitive, with several new products scheduled for launch by both domestic and foreign firms in the next two years.

“Avinya, the first of many premium EV products in this series, will be underpinned on the EMA platform. Our Gen - 1 architecture was an IC-conversion platform, The Gen-2 platform offers flexibility of an ICE and EV, and Gen 3 we said will be born electric. When we went out looking for various architectures we realized that the EMA architecture fits the requirements of Avinya to the T. There will be significant benefits to this. First of all it accelerates our entry to the high-end EV segment, it reduces our development cost and hastens adoption of advanced technologies that will already be present in JLR. Lastly, Avinya EVs will be a series which are all going to be globally available competitive products. So, what better than to take a globally available platform like EMA. It is also a huge step for TPEM and JLR with engineering and sustainability innovation for the maximum benefit of both companies," P.B. Balaji, group chief financial officer, Tata Motors, said in a conference call.

Tata Motors on Thursday reported a net profit of 3,764 crore for the quarter ended 30 September, compared to a loss of 944 crore reported by the company during the same period last year, marking the fourth consecutive quarter of profits for the auto major. Its consolidated revenue for the quarter was reported at 1.05 lakh crore, up 32% year-on-year. On a standalone basis, Tata Motors reported a net profit of 1,270 crore compared to a 293 crore net loss during the same period last financial year. It reported an 86% year-on-year growth in its Ebitda (earnings before interest, taxes, depreciation and amortization) at 14,400 crore for the quarter.

JLR’s EMA platform, designed for pure electric mid-sized SUVs, is set to hit international markets by 2025, the same year as Tata Motors’ planned launch of the Avinya.

On the JLR front, the company said its “production and wholesale volumes are expected to gradually increase in H2 FY24". “The EBIT margin for FY24 is now expected to improve to around 8% compared to the 6% plus previously indicated. We continue to expect free cash flow of over £2bn in FY24 with net debt reducing to less than £1bn by the end of FY24", the company said in a statement.

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ABOUT THE AUTHOR
Alisha Sachdev
Alisha Sachdev is an assistant editor with Mint based in Delhi. She reports on the auto and mobility sector, with a special focus on emerging clean mobility technologies. She also focusses on developing multimedia properties for Mint and currently hosts the 'In A Minute' series and the Mint Primer podcast. Previously, she has worked with CNBC-TV18 and NDTV.
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Published: 02 Nov 2023, 05:38 PM IST
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