The company posts its strongest operational year yet in FY25, clearing ₹52,500 crore in Debt Under the Reimagine Strategy
24 May 2025 | 1625 Views | By Kiran Murali and Ketan Thakkar
Jaguar Land Rover delivered its strongest operational performance to date in FY25, setting records and achieving a significant debt milestone, CEO Adrian Mardell said in the company’s annual report, crediting the Reimagine strategy for driving the transformation.
“The robustness of JLR’s Reimagine strategy was affirmed in FY25 as the ...
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Jaguar Land Rover delivered its strongest operational performance to date in FY25, setting records and achieving a significant debt milestone, CEO Adrian Mardell said in the company’s annual report, crediting the Reimagine strategy for driving the transformation.
“The robustness of JLR’s Reimagine strategy was affirmed in FY25 as the Company set new records,” Mardell stated. “We also broke records, achieving the highest ever quarter one and quarter three revenues in JLR’s history, while delivering our highest quarter four- and full-year EBIT margin in a decade.”
JLR also met its strategic objective of eliminating net debt. “Achieving a net cash positive position is a huge milestone for JLR; an ambition first stated at the launch of our Reimagine strategy in February 2021,” he said. “Having eliminated successfully £5.0 billion of debt since the peak in August 2022, the company is now net debt free thanks to focused, prudent, and strong financial discipline.”
Despite headwinds—including a Q2 aluminium supply disruption and continued weakness in China—JLR sustained momentum. “We recovered strongly in the second half of the financial year,” Mardell said.
Electrification remained a core focus. “We invested £500 million to transform our Halewood facility for the electric era,” Mardell noted. The Solihull plant was also upgraded. “Range Rover’s historic home... is now ready to build pure electric Range Rover models alongside internal combustion and plug-in electric hybrid siblings.”
On sustainability, “We are installing the latest energy-efficient paint technology and filtration techniques,” Mardell said, reinforcing the company’s goal of carbon net zero by 2039.
Reflecting on the year, he added: “This year has tested JLR, and we have risen to the challenges.” Looking to FY26, Mardell expressed confidence: “This strong and consistent performance, the commitment of our people, partners, and clients, and the appeal of our luxury brands will support our response to current global economic challenges and the evolving global trade environment.”
Operational Headwinds
JLR said FY25 brought varied external challenges. “External challenges have had varying levels of impact on our business... We have responded... and improved our performance y o y,” the company stated.
In Q2, flooding at a key aluminium supplier’s facility in Switzerland disrupted production. “There was a short-term impact... however, we recovered strongly in H2,” JLR noted.
Marketing expenses, historically low due to supply constraints, began rising. “We are now seeing an increase in these costs across our product portfolio,” the company said, expecting “fixed marketing investment and variable marketing expenses... to continue to rise in response to tougher market conditions.”
China continued to be difficult. “The China market continued to face headwinds,” the company said, citing competition, credit constraints, and retailer insolvencies. To mitigate this, “Freelander will create complementary growth in China through a licensing agreement with our joint venture partner, Chery.”
JLR is also tracking geopolitical and regulatory shifts globally. “We proactively scenario plan... to ensure we’re able to respond as a business effectively,” the company said.
Electrification, Personalisation, and Strategic Alliances
“Our shift to electrification is central to transforming our business and achieving carbon net zero by 2039. We aim to offer electric versions of all our brands by the end of the decade,” JLR stated.
Jaguar was relaunched as an all-electric brand with the Type 00 design concept debuting in December 2024. “The first reimagined production car will be the most powerful Jaguar ever, with a range of c. 700 kilometres.” Meanwhile, Range Rover Electric has surpassed 59,867 sign-ups ahead of its launch. “The vehicle’s capabilities surpass any other luxury electric SUV,” JLR said.
In China, “JLR and Chery are forging an innovative collaboration model... through the licensing of Freelander,” combining Chery’s EV tech with British branding for global and local markets.
Reimagine execution remains capital-intensive. “We announced a £500 million investment to transform our historic Halewood facility... before eventually becoming our first all-electric production facility.” An additional £65 million went into bespoke paint capabilities.
Leadership and Tata ecosystem synergies are seen as enablers. “Throughout the year, we have strengthened our leadership team,” JLR said. “Our partnerships with Tata Group strengthened... as we continue to leverage synergies.”
A notable alliance was struck with Tata Communications. “In Q3, we announced our plan to partner with Tata Communications (TCL), using its MOVE™ platform on our next generation vehicles to enable continuous connectivity in the remotest locations from 2026,” JLR said.