In a strategic alliance aimed at accelerating its entry into the high-end electric vehicle (EV) market, Tata Motors (NYSE:TTM)' EV division and Jaguar Land Rover (JLR) are set to collaborate on the forthcoming Tata Avinya EV. The vehicle will leverage JLR's Electrified Modular Architecture (EMA), a technology that is also slated to underpin JLR's future battery-powered SUVs starting in 2025.
The EMA incorporates a propulsion system that optimizes cell-to-pack (CTP) battery technology, management, and charging systems for maximum range and efficiency. With this architecture, Tata's 'Gen 3' EVs will employ lightweight materials and electric-only powertrains, targeting a minimum range of 500 kilometers on a full charge. These vehicles mark an upgrade from the Gen 2 Tata EVs, including the Curvv coupe-SUV and Harrier EV, which are set to debut in 2024.
The Avinya EV will support ultra-fast charging, gaining 500 km of range in just 30 minutes. This development comes as part of Tata Sons' commitment of £4 billion towards a new battery cell gigafactory in the UK, with JLR as an ‘anchor' customer. JLR will source battery cells from Tata Group's Agratas Energy Storage Solutions, who will oversee raw materials procurement, design, and development of lithium-ion cells.
This alliance is part of JLR's broader transition to an all-electric line-up of vehicles. The company has invested over £1.4 billion over five years in its Halewood plant, Solihull plant, Nitra plant, and other manufacturing sites. Additionally, JLR has invested £250 million in the JLR Future Energy Lab for electric drive unit development and has partnered with Wykes Engineering for second life battery energy storage schemes.
The first EVs from JLR, including a Land Rover SUV and a Jaguar four-door GT, are scheduled for a 2024 debut. Meanwhile, Tata Motors anticipates that by FY27, EVs will account for 25% of total sales, escalating to 50% by 2030. The premier model among the second-gen EVs is targeted for 2024, with the Avinya concept and third-gen models following in 2025.
InvestingPro Insights
The strategic alliance between Tata Motors and Jaguar Land Rover (JLR) indicates a promising future for Tata Motors in the EV market. InvestingPro data and tips provide valuable insights into the company's financial health and market position.
InvestingPro Tips highlight that Tata Motors, also known as TAMO, has seen accelerating revenue growth. This is a positive sign indicating that the company's strategic decisions, such as the alliance with JLR, are paying off.
Moreover, TAMO's net income is expected to grow this year, further emphasizing the company's strong financial performance. This expected growth in net income could be a result of the company's increased focus on the EV market, which is rapidly growing and profitable.
InvestingPro data also reveals that TAMO is a prominent player in the Automobiles industry. This is crucial as it indicates the company's strong market presence and competitive edge, which could be further strengthened by the collaboration with JLR.
Lastly, the stock of TAMO has seen a large price uptick over the last six months and has delivered a strong return over the last five years. This suggests that the market has responded positively to the company's strategic initiatives and future plans.
For more detailed insights and additional tips, consider exploring the InvestingPro product. Currently, it lists more than 10 additional tips for TAMO, offering a comprehensive understanding of the company's financial health and market position.
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