Jaguar to go all-electric by 2025, JLR plans closer connect with Tata Group

The Tata Motors-owned Jaguar Land Rover today unveiled a new global business growth strategy. Titled ‘Reimagine’, it aims at the sustainability-rich re-imagination of modern luxury, unique customer experiences, and positive societal impact and an overarching goal to become a net zero carbon business by 2039. It calls for Jaguar to become an all-electric luxury brand from 2025 to ‘realise its unique potential’

Commenting on the new strategy, Jaguar Land Rover CEO Thierry Bolloré said: “Jaguar Land Rover is unique in the global automotive industry. Designers of peerless models, an unrivalled understanding of the future luxury needs of its customers, emotionally rich brand equity, a spirit of Britishness and unrivalled access to leading global players in technology and sustainabilitywithin the wider Tata Group.

“We are harnessing those ingredients today to re-imagine the business, the two brands and the customer experience of tomorrow. The Reimagine strategy allows us to enhance and celebrate that uniqueness like never before. Together, we can design an even more sustainable and positive impact on the world around us,” he added.

Heightend focus on sustainability
At the heart of its Reimagine plan will be the electrification of both Land Rover and Jaguar brands on separate architectures with two clear, unique personalities.

In a Land Rover, vehicle and driver are united by adventure. In the next five years, Land Rover will roll out six pure electric variants in luxury SUVs through its three families of Range Rover, Discovery and Defender. The first all-electric variant will arrive in 2024.

By the middle of the decade, “Jaguar will have undergone a renaissance to emerge as a pure electric luxury brand with a new portfolio of emotionally engaging designs and pioneering next-generation technologies”

Jaguar and Land Rover will offer pure electric power, nameplate by nameplate, by 2030. By this time, in addition to 100% of Jaguar sales, it is anticipated that around 60% of Land Rovers sold will be equipped with zero tailpipe powertrains.

JLR says its aim is to achieve net zero carbon emissions across its supply chain, products and operations by 2039. As part of this ambition, the company is also preparing for the expected adoption of clean fuel-cell power in line with a maturing of the hydrogen economy. Development is already underway with prototypes arriving on UK roads within the next 12 months as part of the long-term investment programme.

Annual commitments of around £ 2.5 billion (Rs 22,647 crore) will include investments in electrification technologies and the development of connected services to enhance the journey and experiences of customers, alongside data-centric technologies that will further improve their ownership ecosystem.

New architecture strategy
Reimagine will see Jaguar Land Rover establish new benchmark standards in quality and efficiency for the luxury sector by rightsizing, repurposing and reorganising. Central to that journey, and in order to establish different personalities for the two brands, is the new architecture strategy. 

Land Rover will use the forthcoming flex Modular Longitudinal Architecture (MLA). It will deliver electrified internal combustion engines (ICE) and full electric variants as the company evolvesits product line-up in the future. In addition, Land Rover will also use pure electric biased Electric Modular Architecture (EMA) which will also support advanced electrified ICE.

Reimagine is designed to deliver simplification too. By consolidating the number of platforms and models being produced per plant, the company will be able to establish new benchmark standards in efficient scale and quality for the luxury sector. Such an approach will help rationalise sourcing and accelerate investments in local circular economy supply chains.

Closer collaboration with the Tata Group
In order to realise its vision of modern luxury mobility with confidence, the company will curate closer collaboration and knowledge-sharing with Tata Group companies to enhance sustainability and reduce emissions as well as sharing best practice in next-generation technology, data and software development leadership.

“We have so many ingredients from within. It is a unique opportunity,” said Bolloré. “Others have to rely solely on external partnerships and compromise, but we have frictionless access that will allow us to lean forward with confidence and at speed.”

Bringing all these ingredients together, Jaguar Land Rover is on a path towards double-digit EBIT margins and positive cashflow, with an ambition to achieve positive cash net-of-debt by 2025. 

N Chandrasekaran, Chairman of Tata Sons, Tata Motors and Jaguar Land Rover Automotive commented: “The Reimagine strategy takes Jaguar Land Rover 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.”

The aim is for Jaguar Land Rover to achieve positive cash flow net-of-debt by 2025, with the ultimate target to become “one of the most profitable luxury manufacturers in the world.”