Jaguar Land Rover has signalled its intention to take on Tesla after a major announcement of its new strategy to become a pure electric luxury brand by the middle of the decade.
In an announcement today, the Warwickshire headquartered car maker says that it will build six pure electric Land Rovers in the next five years and retain all of its core manufacturing facilities in the UK and worldwide.
The company also aims to have a hydrogen fuel cell prototypes in the next 12 months, zero tail pipe emissions by 2036 and be a net zero carbon business by 2039.
Jaguar Land Rover’s Reimagine plan, will see the electrification of both Land Rover and Jaguar brands on separate architectures.
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.
Jaguar Land Rover’s 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 as the development of hydrogen progresses. Development is already underway with prototypes arriving on UK roads within the next 12 months as part of the long-term investment programme.
The news has been welcomed by the industry. Mike Hawes, Society of Motor Manufacturers and Traders (SMMT) Chief Executive, said: “The news today that the UK’s largest automotive business has confirmed its long-term commitment to the UK is very welcome and is an injection of confidence into the wider sector.
“Its roadmap to a future that is built around sustainability, with electrified and hydrogen models as well as investment in connected and digital technologies, aligns with Government ambition and increasing consumer expectations. Delivering this ambition, however, will require the UK to improve its competitiveness. The UK automotive industry is essentially strong, innovative and agile, but the global competition is fierce.
“Government must ensure advanced manufacturing has its full support, with a policy framework and plan for growth that reduces costs, accelerates domestic battery production and electrified supply chains, and incentivises R&D and skills development. Every effort must be made to create the conditions that will enable the entire sector to flourish.”
Jaguar Land Rover has announced a new centralised team to accelerate pioneering innovations in materiality, engineering, manufacturing, services and circular economy investments and it has also committed of around £2.5 billion investment in electrification technologies and the development of connected services to enhance the journey and experiences of customers, alongside technologies that will further improve their ownership ecosystem.
Proven services like the flexible PIVOTAL subscription model (a monthly membership giving drivers access to a premium range of Jaguar Land Rover vehicles. The manufacturer takes care of everything, including insurance, tax, and servicing. All the driver has to do is to add fuel). PIVOTAL was born out of Jaguar Land Rover’s incubator and investor arm, InMotion, and will now be rolled out to other markets following a successful launch in the UK.
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 evolves its 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.
Future Jaguar models will be built exclusively on a pure electric architecture.
From a core manufacturing perspective that means Jaguar Land Rover will retain its plant and assembly facilities in the home UK market and around the world. As well as being the manufacturer of the MLA architecture, Solihull, West Midlands will also be the home to the future advanced Jaguar pure electric platform.
Key partners including Trade Unions, retailers and those in the supply chain will continue to play a vital part of the extended new Jaguar Land Rover ecosystem and its journey towards reimagining the future of modern luxury, said the company today.
To achieve its Reimagine strategy, the company plans closer collaboration with Tata Group companies to share best practice in technology, data and software development leadership. (Jaguar Land Rover has been a wholly-owned subsidiary of Tata Motors, in which Tata Sons is the largest shareholder, since 2008.)
Thierry Bolloré, who took over from Dr Ralph Speth as CEO of Jaguar Land Rover last summer, said: “We have so many ingredients from within. It is a unique opportunity. 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, the company said that Jaguar Land Rover is on a path towards double-digit EBIT margins and positive cash flow, with an ambition to achieve positive cash net-of-debt by 2025.
Mr N Chandrasekaran, Chairman of Tata Sons, Tata Motors and Jaguar Land Rover Automotive plc, added: “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.”
Thierry Bolloré concluded: “As a human-centred company, we can, and will, move much faster and with clear purpose of not just reimagining modern luxury but defining it for two distinct brands. Brands that present emotionally unique designs, pieces of art if you like, but all with connected technologies and responsible materials that collectively set new standards in ownership. We are reimagining a new modern luxury by design.”