Tata Motors had in April 2022 unveiled the Avinya electric vehicle concept, which would be based on the pure EV Gen three architecture. Its arm Tata Passenger Electric Mobility on Thursday inked a strategic collaboration with its British luxury unit Jaguar Land Rover for the access to the latter's EMA architecture for a fee, which the Avinya will now be developed on.
JLR had announced in April this year that its next generation medium-size SUV architecture, electrified modular architecture (EMA), would now be pure electric as it looks to accelerate its transition into a luxury EV manufacturer.
This EMA architecture will underpin the next generation of electric mid-size SUVs of JLR, which will be launched from 2025 onwards.
The platform is optimised for native battery electric vehicle (BEV) proportions to maximise interior space, comfort and vision along with advanced electrical and electronic architecture, connectivity, software and feature over the air capability. The EMA will have a highly integrated propulsion system (cell to pack battery technology, battery management and charging system).
Under the memorandum of understanding signed between the two companies, the EMA platform will be licensed to Tata Passenger Electric Mobility for a royalty fee. This will include the electrical architecture, electric drive unit, battery pack and the manufacturing know-hows for the development of Avinya, which will be a series of premium EVs on the EMA platform.
The two companies will also enter into an engineering services agreement to support the company's change content requirements for the first vehicle development.
Partnering with JLR on the EMA platform will make the Avinya series globally competitive and future proof, the company said.
"There are significant benefits on this. It accelerates our entry in the high-end EV segment, it also reduces the development cost and accelerates adoption of the advanced technologies, be it autonomous, connected, electric, because it will be in JLR already," P.B. Balaji, the chief financial officer of Tata Motors told reporters.
He further pointed that Avinya will be a series of EVs, globally competitive and available. The EMA will also be a global platform of JLR, which will support products like the Range Rover Evoque and Velar SUVs and thus a perfect fit for the Avinya too, he said.
"This is also a huge step forward for JLR and Tata Passenger Electric Mobility because it will then also help share other engineering and sustainability innovations that we have to do for the maximum benefit of both the companies," Balaji added.
It must be noted that the Harrier and Safari SUVs that Tata Motors sells were developed off JLR's D8 platform. This partnership on the EMA platform for a full vehicle development programme will be a significant step up in the level of collaboration between the Tata Group companies.
JLR has already announced plans to invest GBP 15 billion over five years as it transitions to EVs. It is investing GBP 1.4 billion over next five years in its Halewood plant in Merseyside and Solihull plant in the West Midlands in the UK to produce the next generation of electric models. Further, GBP 250 million will be invested in JLR Future Energy Labs in Coventry, UK, to develop electric drive units.
Separately, Tata Motors on Thursday reported a consolidated net profit of Rs 3,764 crore in the July-September quarter, versus a net loss of Rs 944 crore, a year ago. Consolidated revenue for the quarter rose 32 per cent year-on-year to Rs 1.05 lakh crore from Rs 79,611 crore.
JLR reported a revenue of GBP 6.9 billion in the second quarter, up 30 per cent from a year ago. Its net profit in July-September stood at GBP 272 million, compared with a loss in the year ago quarter.
The company has raised EBIT (earnings before interest, taxes) guidance for the current financial year to 8 per cent from earlier 6 per cent. JLR's free cash flow is expected to be over GBP 2 billion this year with net debt likely to reduce to less than GBP 1 billion by end of March 2024.
In the domestic business, Tata Motors remains optimistic on demand, despite external challenges and is anticipating a moderate inflationary environment. The financial performance is expected to improve, amid improving profitability in its passenger vehicle and EV business and continued low-break-even in JLR.