Jaguar Land Rover invests big to catch up in EV race
The pressure on carmakers to electrify quickly is picking up, especially in China
19 April 2023 - 18:14
byNick Carey and Sachin Ravikumar
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
JLR plans a new all-electric Range Rover SUV in 2025 and order books for that vehicle will open later this year. Picture: SUPPLIED
Jaguar Land Rover (JLR) will invest £15bn (around R338bn) over the next five years in electric vehicles (EVs), and promised on Wednesday to deliver a new electric Jaguar in 2025 as the British luxury carmaker plays catch-up with rivals.
JLR, which is owned by Indias Tata Motors, said in early 2021 that Jaguar would be entirely electric from 2025, but on Wednesday could not confirm when production of its fossil-fuel models would end.
The carmaker previously said it would invest £2.5bn a year on electrification.
The pressure on carmakers to electrify quickly is picking up, especially in China where the competition is moving faster and the pressure to cut prices is getting more intense.
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 has since not launched any other zero-emission models.
The British carmaker said its Halewood plant in northwest England would become an all-electric manufacturing facility.
JLR also plans a new all-electric Range Rover SUV in 2025 and order books for that vehicle would open later this year.
The new Jaguar will be built at the carmaker’s Solihull plant in central England and will be the first of three new electric models.
JLR reported a quarterly profit in January, but has been hit harder than other major carmakers by the pandemic and the semiconductor chip shortage — as larger rivals have greater leverage on suppliers.
In its fiscal 2022 year ending March 31 last year, JLR sold 376,381 units, 39% below its fiscal 2018 year — the last year for which it reported a full-year profit.
JLR also said it was targeting a double-digit margin for earnings before interest and taxes by 2026. Its last quarterly ebit margin — a key measure of profitability — was 3.7%.
JLR’s owner Tata is also considering building an EV battery plant in Spain or Britain, according to a source, which would supply JLR.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Jaguar Land Rover invests big to catch up in EV race
The pressure on carmakers to electrify quickly is picking up, especially in China
Jaguar Land Rover (JLR) will invest £15bn (around R338bn) over the next five years in electric vehicles (EVs), and promised on Wednesday to deliver a new electric Jaguar in 2025 as the British luxury carmaker plays catch-up with rivals.
JLR, which is owned by Indias Tata Motors, said in early 2021 that Jaguar would be entirely electric from 2025, but on Wednesday could not confirm when production of its fossil-fuel models would end.
The carmaker previously said it would invest £2.5bn a year on electrification.
The pressure on carmakers to electrify quickly is picking up, especially in China where the competition is moving faster and the pressure to cut prices is getting more intense.
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 has since not launched any other zero-emission models.
The British carmaker said its Halewood plant in northwest England would become an all-electric manufacturing facility.
JLR also plans a new all-electric Range Rover SUV in 2025 and order books for that vehicle would open later this year.
The new Jaguar will be built at the carmaker’s Solihull plant in central England and will be the first of three new electric models.
JLR reported a quarterly profit in January, but has been hit harder than other major carmakers by the pandemic and the semiconductor chip shortage — as larger rivals have greater leverage on suppliers.
In its fiscal 2022 year ending March 31 last year, JLR sold 376,381 units, 39% below its fiscal 2018 year — the last year for which it reported a full-year profit.
JLR also said it was targeting a double-digit margin for earnings before interest and taxes by 2026. Its last quarterly ebit margin — a key measure of profitability — was 3.7%.
JLR’s owner Tata is also considering building an EV battery plant in Spain or Britain, according to a source, which would supply JLR.
Reuters
Electric power is ‘perfect’ for the brand — Rolls-Royce boss
The eye-catching car concepts launched at Las Vegas expo
The potential perils of AI: should we hit pause on smart cars?
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
New Mercedes-Benz GLC local pricing announced
Ford Mustang gallops on as world’s best-selling sports car
Armormax turns Land Rover Defenders into forts
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.