Tata Motors-owned British luxury carmaker Jaguar Land Rover has revised its five-year investment plan till the financial year 2028 upwards by around 20 percent to £18 billion (Rs 1.9 lakh crore) with a significant part going into product development.
The investment plan has been increased by £3 billion from the earlier £15 billion earmarked for five years, according to a presentation shared by the company on its Investor Day 2024. The multi-billion investment comes as the automaker prepares to enhance its product portfolio with an electrification roadmap.
JLR, which targets an EBIT margin of 10 percent by FY26, last year said the investment will go for the improvement of its industrial footprint, vehicle programs, autonomous, AI and digital technologies, and people skills while reaffirming to its Reimagine strategy, which will reposition the company as an electric-first, modern luxury carmaker by 2030.
In FY24, the automaker invested £3-3.5 billion. JLR will invest £3.5 billion this year, followed by around £3.8 billion in the next financial year. The company noted that the majority of the future spending on product developments between FY25 and FY28 will go toward battery electric vehicles.
Source: JLR
JLR delivered a strong financial performance in FY24 with a record revenue of £29 billion, fuelled by higher production and sustained demand in the luxury vehicle market globally. In FY25, the automaker expects to net cash-positive. It has set a target of £30 billion in revenue with EBIT margin projected to remain at around 8.5 percent.
“We are in the delivery phase of our electrified future with physical testing underway across all three architectures,” the company noted. JLR has three architectures - MLA for ICE, PHEV and BEVs, Electrified Modular Architecture (EMA) and Jaguar Electrified Architecture (JEA) solely for BEVs.
Recently, Tata Motors' Chairman Natarajan Chandrasekaran said JLR is poised to embark on an exciting phase, doubling down on its journey to become a premium luxury OEM with an exciting range of products lined up to be launched over the next 3 years.
Last year, JLR unveiled a new ‘House of Brands’ approach and a new look at its corporate identity to accelerate the delivery of its vision of being the proud creators of modern luxury. The first electric Range Rover is expected to be launched later this year, and further EVs, including the all-electric Jaguar, are lined up for coming years.