Tata partners with China's Chery for premium EVs
What's the story
Tata Motors, India's largest electric car manufacturer, will license an automotive platform from China's Chery. The move comes as part of its strategy to fast-track the development of its delayed premium electric vehicles (EVs). According to Reuters, Tata will use Chery's platform for locally manufacturing EVs under its upscale Avinya brand.
Strategic pivot
Shift from JLR's EMA architecture
The plan to use Chery's platform comes as a major shift from Tata's earlier strategy. The company had initially planned to use Jaguar Land Rover's (JLR) electrified modular architecture (EMA) for Avinya models slated for 2025. However, those plans were shelved last year when JLR canceled its EMA-based EV production in India, forcing Tata to rethink its approach.
Tech access
First Avinya model expected in 2027
The deal with Chery will speed up Tata's EV development, giving it access to advanced features and technology. The first Avinya model on Chery's platform is expected in 2027. It will be shipped from China as a kit and assembled in India, with efforts already underway to source localized components. A second EV is due for launch in 2029, with potential plans for two more vehicles beyond that.
Strategic partnerships
Cars to be manufactured in Tamil Nadu
Tata Motors has confirmed its partnership with Chery, saying it will leverage the Freelander platform produced in a joint venture between Chery and JLR in China. The cars will be manufactured at Tata's newly opened factory in Tamil Nadu. "Avinya is being developed as a global premium brand ... to be built on multiple, scalable platforms and architectures while being anchored in Tata Motors's design, engineering and integration capabilities," the company said.
Supplier role
Chery confirms supply to Tata Motors Passenger Vehicles
Responding to the deal, Chery said it will supply Tata Motors Passenger Vehicles. "Chery will act as a supplier to Tata Motors Passenger Vehicles. Each project operates under its own separate agreement with standard commercial terms," the Chinese carmaker said.
Market position
Stop-gap arrangement while Tata develops its own platform
Electric models currently account for 14% of Tata's total sales, with a target to more than double that to 30% by 2030. However, competitors such as Mahindra & Mahindra and JSW MG Motor are closing in on its lead. The deal with Chery is seen as a "stop-gap arrangement" while Tata still plans to develop its own dedicated platform over time.