Tata Motors will start assembling the Range Rover Evoque at its new factory in India

Jaguar Land Rover will begin assembling the Range Rover Evoque at a new factory in southern India on February 9, accelerating a shift to shift production and tap rising domestic demand for luxury cars.The first vehicle will roll out of Tata Motors Passenger Vehicles Ltd.’s 90 billion rupees ($994 million) Panapakkam plant in Tamil Nadu, people familiar with the plans said.

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The site, which is expected to become a hub for its premium cars, will eventually absorb more JLR assembly currently handled at Tata’s Pune plant, said the people, who asked not to be identified discussing confidential company details. It is designed for an annual capacity of 250,000 vehicles.The move aims to centralize JLR’s Indian operations into a modern hub closer to major ports and suppliers, the people said. While initial production of the Evoque is expected to be less than 10,000 units for the local market, Tata plans to eventually use the site for exports, they added.

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

The local pressure comes as JLR navigates mounting headwinds in its traditional strongholds. In China, once a major profit driver, sales are under pressure from higher consumption taxes and fierce competition from domestic EV rivals. At the same time, the market is struggling with increased US import tariffs and the financial consequences of a 2025 cyber attack 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, started local assembly in 2011 to avoid high import duties. By expanding its domestic manufacturing footprint, JLR aims to price competitively against German rivals 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 more expensive Range Rover and Range Rover Sport to its range, a vote of confidence in India’s appetite for high-performance vehicles and production capacity.

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

The company’s shares fell nearly 3% in trading in Mumbai on Thursday. It will report quarterly results later in the day.