Jaguar Land Rover (JLR) will invest GBP 15 billion (approximately Rs. 1,23,200 crore) in electric vehicles (EVs) over the next five years and pledged on Wednesday to deliver a new electric Jaguar in 2025 as the British luxury car maker catches on plays -up with rivals.
JLR, which is owned by India’s Tata Motors, said in early 2021 that Jaguar would be all-electric from 2025, but was unable to confirm on Wednesday when production of its fossil-fuelled models would end.
The automaker previously said it would invest GBP 2.5 billion (approximately Rs. 20,500 crore) a year in electrification.
Pressure on automakers to electrify quickly is mounting, especially in China, where competition is accelerating and the pressure to lower prices is mounting.
Premium German rivals Mercedes and BMW have already rolled out a number of electric models – BMW alone has promised 11 new EV models in China by the end of the year.
JLR launched its well-received electric I-Pace in 2018, but hasn’t launched any other zero-emission models since then.
The British automaker said its Halewood plant in north west England would become an all-electric manufacturing facility.
JLR is also planning a new all-electric Range Rover SUV in 2025 and order books for that vehicle should open later this year.
Built at the carmaker’s Solihull plant in central England, the new Jaguar will be the first of three new electric models.
JLR reported a quarterly profit in January, but has been hit harder than other major automakers by the pandemic and the shortage of semiconductor chips as larger rivals have more leverage over suppliers.
In fiscal year 2022 ended March 31 last year, JLR sold 376,381 units, 39 percent less than in fiscal year 2018 — the last year for which it reported a full-year profit.
JLR also said it is aiming for double-digit earnings before interest and tax (EBIT) margin by 2026. Its latest quarterly EBIT margin — a key measure of profitability — was 3.7 percent.
JLR’s owner Tata is also considering building an EV battery factory in Spain or Britain, a source told Reuters, who would supply JLR.
© Thomson Reuters 2023