Tata Motors to License China's Chery Platform for Premium Avinya EVs; First Model Due in 2027
Tata Motors, India's largest electric vehicle maker, plans to license an automaking platform from China's Chery Automobile to develop its delayed premium EV brand Avinya, according to sources familiar with the matter. The move marks a significant strategic pivot for Tata as it races to protect its EV market leadership against fast-closing rivals while navigating the collapse of its earlier platform plans.
The Deal: What Tata and Chery Have Agreed
Tata Motors confirmed to Reuters that it will leverage the Freelander platform, produced through a joint venture between Chery and Jaguar Land Rover (JLR) in China. The vehicles will be manufactured at Tata's newly opened factory in Tamil Nadu, southern India.
Key details of the arrangement include:
- At least two Avinya-branded premium EVs are planned on Chery's platform.
- The first model is targeted for launch in 2027, to be shipped from China as a kit and assembled in India, with efforts to source localised components already underway.
- A second EV is scheduled for 2029, with scope for up to two additional vehicles beyond that.
- Chery will act as a supplier to Tata Motors Passenger Vehicles, with each project operating under its own separate commercial agreement.
Tata described the collaboration as an important pillar of its global premium EV journey, adding that the deal will deliver the desired proposition for its luxury EV segment at scale. Chery confirmed the arrangement builds on its existing collaboration with JLR.
Why Tata Needed a New Platform
The Chery platform deal is a direct response to a significant setback in Tata's original EV roadmap. Tata had initially planned to use JLR's electrified modular architecture (EMA) for its Avinya models, with a target launch around 2025. That plan collapsed last year when JLR shelved its plans to build EMA-based EVs in India, forcing Tata into a strategic reset.
One source described the Chery deal as a "stop-gap arrangement", noting that without fresh premium products, Tata risks losing its hard-won EV market lead. The company still intends to develop its own dedicated EV platform over the longer term, but the Chery licensing arrangement allows it to bridge the product gap more quickly and cost-effectively than developing proprietary technology from scratch.
The Competitive Pressure Driving the Decision
The urgency behind the deal reflects the intensifying competition in India's EV segment. While electric models currently account for 14% of Tata's total vehicle sales, the company has set a target to more than double that share to 30% by 2030. However, rivals Mahindra and Mahindra and JSW MG Motor are closing the gap, exposing weaknesses in Tata's EV line-up and raising the risk of market share erosion in the premium segment.
Notably, JSW Motor, the independent carmaking venture of billionaire Sajjan Jindal, also has a similar platform licensing deal with Chery, indicating that the Chinese automaker's technology is becoming a quiet but critical enabler for India's EV ambitions more broadly.
Indian Automakers Quietly Embracing Chinese EV Technology
The Tata-Chery deal reflects a broader, largely unspoken trend in India's automotive industry. Indian carmakers are increasingly importing Chinese EV technology and platforms while deliberately avoiding deeper equity partnerships due to political sensitivities and regulatory restrictions.
Since 2020, the Indian government has maintained strict curbs on direct investment from countries sharing land borders with India, primarily targeting Chinese capital, which effectively froze large-scale Chinese equity participation in the Indian auto industry. While some restrictions have eased in sectors such as electronics, carmakers still face significant barriers to outright Chinese ownership or equity investment.
Platform licensing, however, operates in a different regulatory space and allows Indian manufacturers to access China's formidable EV technology, cost advantages, and development speed without triggering ownership-related regulatory concerns.
What This Means for Tata Motors Investors
For investors tracking Tata Motors, the Chery platform deal is a strategically pragmatic move that should accelerate the Avinya brand's path to market. The ability to launch a credible premium EV in 2027 rather than waiting for proprietary platform development reduces the risk of Tata being competitively outflanked in the high-value premium segment. At the same time, the reliance on a Chinese platform introduces questions around long-term technology sovereignty, localisation depth, and margin structure that investors will want to monitor as the programme matures. The first product launch in 2027 and the ramp-up of the Tamil Nadu factory will be key milestones to watch.
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