Jaguar Land Rover boosts investment, balances EV and ICE plans

Jaguar Land Rover (JLR) has announced a significant increase in its investment plan, raising its spending from GBP15 billion (USD19 billion) to GBP18 billion (USD23 billion) over the next five years. This decision comes as the automaker navigates the complexities of a global automotive market with slowing electric vehicle (EV) uptake and the continued need for internal combustion engine (ICE) vehicles.

Originally, JLR planned to convert its Halewood plant in the UK into a purely electric production facility. However, with the recent announcement, the plant will continue to produce models with combustion engines alongside electric drive units. The Wolverhampton engine plant, which currently manufactures combustion engines, will also pivot to producing electric drive units and battery packs for JLR’s next-generation vehicles.

JLR’s Chief Financial Officer, Richard Molyneux, explained that the shift in strategy is driven by the need to invest in multiple powertrains until a clear winner emerges in the global market. “Until one powertrain technology properly wins globally, we are going to continue to have to invest in multiple powertrains at the same time,” Molyneux said, highlighting the complexity of the current automotive landscape.

The company’s Reimagine strategy, which aims to transform Jaguar into an all-electric luxury brand, has been adjusted to accommodate these changes. Instead of launching six all-electric models by 2026, JLR now plans to release four, including the highly anticipated Range Rover Electric SUV. Despite the reduction in the number of all-electric models, the company maintains a strong focus on electric mobility, dedicating 65% of its investment to EVs between now and 2028.

In addition to its EV plans, JLR is also advancing its hybrid and plug-in hybrid offerings. This balanced approach allows the company to hedge against the slower-than-expected global adoption of EVs while continuing to meet consumer demand for ICE vehicles.

JLR’s financial performance has remained strong, with the company reporting a record revenue of GBP7.3 billion (USD9.3 billion) in the first quarter of the 2024 fiscal year. The Range Rover Electric has already generated significant interest, with approximately 41,000 customers on its waiting list. Meanwhile, the company’s partnership with Chery in China will further enhance its electric vehicle offerings under the Freelander brand, set to be exported worldwide.