Tata Motors, JLR flag China risk in electric car supply chain

Tata Motors Ltd and Jaguar Land Rover have separately highlighted risks to their electric vehicle business for the first time ever, including potential production delays and shortages, likely as a result of China's stranglehold over the EV supply chain.

- Ayaan Kartik

Introducing a new element in their annual reports' principle risks segment, titled 'electrification transition', Mumbai based Tata Motors and its UK-based subsidiary JLR have both underscored the threat of financial losses if the transition to clean technology is not carefully managed.

"Unmanaged supply chain issues can lead to production delays and shortages," the companies said in their annual reports for 2024-25 without mentioning any specific potential trigger.

No other homegrown automaker has mentioned electric transition as a separate business risk in their annual report.

The disclosures in Tata Motors's and JLR's annual reports come as automakers globally are grappling with China's export restrictions on rare earth magnets.