You are here: Home » Companies » News
Business Standard

JLR's $3.5 bn plan to take all Jaguars, 60% Land Rovers electric by 2030

Brainchild of new CEO Thierre Bollore, move forms part of 'Reimagine' strategy of Tata Motors' UK arm; Britain to ban sale of gasoline and diesel cars from 2030, putting pressure on legacy carmakers

Tata Motors | Jaguar Land Rover | electric cars

Shally Seth Mohile  |  Mumbai 

JLR, Jaguar Land Rover, Tata, EV, electric vehicles, cars, auto
JLR also plans to achieve net zero carbon emissions across its supply chain, products and operations by 2039.

All Jaguar cars and six out of every 10 Land Rover models will go electric by 2030 as the UK subsidiary of ditches the combustion engine in favour of the zero-emission technology as part of its ‘Reimagine’ strategy.

According to the plan, crafted by JLR’s newly-appointed chief executive officer, Thierre Bollore, the company will invest about 2.5 billion pounds ($3.5 billion) a year into electrification and related technologies. The Land Rover line will get its first fully electric model in 2024, and by the following year, all Jaguar models will be entirely powered by batteries.

JLR will “reimagine the business, the two brands, and the customer experience of tomorrow”, Bollore, the former Renault SA chief who joined the UK carmaker in September, said in his maiden public address on Monday.

To execute the plan, JLR will empower a new centralised team to build and accelerate pioneering innovations in materiality, engineering, manufacturing, services and circular economy investments.

“The Reimagine strategy takes JLR on a significant path of acceleration in harmony with the vision and sustainability priorities of the wider Tata group. Together, we will help Jaguar realise its potential, reinforce Land Rover’s timeless appeal, and collectively become a symbol of a truly responsible business for its customers, society and the planet,” N Chandrasekaran, chairman of Tata Sons, Tata Motors, and Automotive plc, said in a statement.

ALSO READ: India considers new panel to quicken privatisation of state-run firms

The “Reimagine” plan also aims to deliver simplification and will include consolidation of platforms and models being produced per plant. The company hopes the approach will help rationalise sourcing and accelerate investments in local supply chains. JLR also plans to achieve net zero carbon emissions across its supply chain, products, and operations by 2039.

All these initiatives will put JLR firmly on the path towards double-digit Ebit (earnings before interest and taxes) margins and positive cash flow, with an ambition to achieve positive cash net-of-debt by 2025, the statement said.

investors cheered the announcement. The company’s shares closed at Rs 333.30 apiece on the BSE. “The electrification strategy augurs well for the company and will translate into enhanced appeal for its models globally. Aiming for the double digit-Ebit margin will help JLR reduce debt and improve cash flow," said Mitul Shah, head of research at Reliance Securities.

Sparking the change

  • JLR will spend around $3.5 billion annually on electrification technologies and development of connected vehicle services
  • Land Rover to launch six pure electric variants in next 5 years
  • JLR eyes double-digit EBIT margins by 2025
  • To reduce and rationalise its non-manufacturing infrastructure in the UK
  • In November, Bentley Motors announced that its model range will be fully electric by 2030

Bollore’s decision to shift JLR away from the internal combustion engine (ICE) is prompted by stricter emissions rules. Global carmakers from AG to Jaguar’s smaller rival Lotus Cars have been veering away from ICE and have announced plans to electrify their offerings. Governments around the world are stepping up incentives for battery-powered vehicles and restricting gasoline cars.

ALSO READ: Higher EV share, FY22 auto rebound to support Motherson's revenues

JLR has had limited success selling EVs in the past years. The company introduced plug-in hybrid variants of models including the Range Rover Sport and new Defender, but its only fully-electric vehicle is the I-Pace SUV, which it started selling in 2018.

The manufacturer failed to comply with Europe’s tougher carbon-dioxide rules last year and set aside 35 million pounds to pay for the resulting fines. The UK, its home market, will ban sales of gasoline and diesel cars from 2030, putting further pressure on legacy carmakers, Bloomberg reported.

While JLR will retain its plant and assembly facilities, it said it would “substantially reduce and rationalise” its non-manufacturing infrastructure in the UK. The company is looking at opportunities to repurpose its Castle Bromwich plant in England, which makes the XE and XF sedans as well as the F-Type sports car. The site will produce the models until they’re phased out, Bollore said on a call with reporters.

Meanwhile, Unite the Union has broadly welcomed JLR’s strategy, which does not include plant closures or compulsory job losses. Unite said this was "good in challenging economic times" for the company’s estimated 40,000 UK employees.

With inputs from Bloomberg

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, February 15 2021. 18:19 IST