Jaguar Land Rover has shelved plans to build electric vehicles at parent company Tata Motor’s upcoming $1 billion factory in southern India, four people with knowledge of the matter told Reuters.

Why it matters

Tata, the biggest seller in India’s nascent EV market, faces growing pressure from rivals like JSW MG Motor and Mahindra and Mahindra which have launched new, feature-rich models with longer driving ranges.

Tesla is also finalising plans to launch EVs in India, which is the world’s third-largest car market with 4 million vehicles sold annually.