Range Rover Electric, New Jaguar to Drive JLR’s Next Phase: PB Balaji

Jaguar Land Rover will rely on the launch of the Range Rover Electric, the unveiling of its first new-generation Jaguar and a sharper brand-led strategy to drive growth in FY27, Chief Executive Officer P B Balaji said.

The luxury carmaker will also focus on improving product quality, strengthening customer loyalty and making its business more resilient as global luxury demand remains under pressure.

“2026 is set to be an exciting year for JLR as we develop our next-generation vehicles, including the launch of the Range Rover Electric and the unveiling of the first new Jaguar,” Balaji was quoted as saying in the company’s annual report for FY26.

The company will continue putting its four brands—Range Rover, Defender, Discovery and Jaguar—at the centre of its business.

In April 2026, JLR changed its operating model to align the organisation more closely with its House of Brands strategy. The company expects sharper brand identities to increase customer desirability and build stronger emotional connections.

“We will drive growth by delighting our customers with exhilarating brand experiences and by continually enhancing the quality of our offerings to build long-lasting loyalty,” Balaji said.

JLR will remain flexible in responding to market volatility while working to improve competitiveness and resilience, he added.

Range Rover Electric launch

The Range Rover Electric will be one of JLR’s main product launches in FY27.

The testing and validation of the vehicle advanced during FY26, including a second Arctic Circle durability campaign covering more than 45,000 miles. The company said the vehicle’s waiting list had crossed 60,000 customers.

JLR’s flexible vehicle architectures allow it to offer internal-combustion engines, plug-in hybrids and battery-electric vehicles. This will help the company respond to different rates of EV adoption across global markets.

“We are also well positioned due to our flexible vehicle architectures, which offer ICE and hybrid powertrains as we roll out BEV options, allowing us to meet the needs of clients in different markets as they electrify at different rates,” Balaji said.

The company will also unveil the first production model from the new Jaguar range. The vehicle will follow the Type 00 design concept, which was shown in Miami, Monaco, Tokyo and London.

Balaji said the response to Jaguar’s new design direction had been positive.

The new Jaguar is part of the company’s effort to reposition the brand at the higher end of the luxury market.

China strategy

JLR is also taking steps to improve its position in China, where luxury vehicle demand has weakened and domestic brands have gained market share.

The company is working with joint-venture partner Chery Automobile to develop vehicles under the Freelander name.

“In China, we are taking action to mitigate deteriorating market conditions by developing incremental growth opportunities through our new Freelander collaboration with Chery Automobile,” Balaji said.

The first reborn Freelander is under development, with the brand and a show car already revealed in China in 2026, and plans to launch the first model there later this year.

The partnership is expected to give JLR access to locally developed technology and a faster product-development cycle in the world’s largest car market.

AI and Digital Push

JLR plans to increase the use of data and artificial intelligence across customer experience, product development and operations.

“We will harness the power of data and AI to create delightful customer experiences and accelerate the overall clockspeed of our organisation,” Balaji said.

The company is also strengthening its information-technology systems following the cyberattack that disrupted operations in FY26.

“Following the cyber incident, we continue to invest in further strengthening our IT systems, and we continue to drive our Enterprise Missions to increase efficiency and control our costs,” he said.

JLR will also continue changing its global manufacturing footprint to support electric vehicles alongside petrol and diesel models.

FY26 hit by Tariffs and Cyberattack

JLR’s FY26 performance was affected by higher tariffs, weak demand in China, the end of production of older Jaguar models and a cyberattack that forced it to stop production.

The company faced incremental US tariffs of 27.5% on vehicles exported from the UK and EU during the first quarter. The tariff was later reduced to 10% and 15%, but the higher rate remained in place for part of the year.

JLR also stopped production after the cyberattack in the second quarter. Operations restarted in October and returned to normal levels by mid-November.

“While JLR made strong operational progress in FY26, including the development of our next-generation models and the continued growth of our unique modern luxury brands, it was a year marked by challenges,” Balaji said.

The company’s wholesale volumes, excluding its China joint venture, fell to 307,915 units. Retail sales declined 18% to 352,389 units.

Revenue fell to £22.9 billion from about £29 billion in the previous year. Its underlying EBITDA margin stood at 6.7%. Profit before tax and exceptional items declined to £14 million from £2.5 billion in FY25.

JLR reported a loss after tax of £244 million, compared with a profit of £1.8 billion in the previous year.

Q4 Recovery

JLR’s volumes recovered in the fourth quarter as production returned to normal and delayed vehicles were shipped to customers. The company reported revenue of £6.9 billion in the final quarter, profit before tax of £452 million, and an EBIT margin of 9.2%.

Balaji said the full-year performance still showed the strength of JLR’s brands despite the disruptions.

“JLR recorded revenues of £22.9 billion and adjusted EBIT of 0.7%, demonstrating the company’s robust underpinnings and the continued desirability of our luxury brands,” he said.

JLR will enter FY27 with a product-heavy programme but will continue to face risks from tariffs, currency movements, commodity costs and weak demand in some luxury markets.

Balaji said the company would focus on its brands, products and customer experience while remaining agile in a volatile market. “We will stay flexible and agile in responding to market volatility while strengthening the competitiveness and resilience of our business model,” he said.