Tata Motors-owned Jaguar Land Rover on Monday announced plans to become a net-zero carbon business by 2039 for which its Jaguar brand will become an all-electric luxury vehicle marque from 2025.
Announcing the new 'Reimagine' global strategy, Jaguar Land Rover (JLR) CEO Thierry Bolloré said all Jaguar and Land Rover nameplates will be available in pure electric form by end of the decade, and the first all-electric Land Rover SUV model will be launched in 2024 and the brand will have six pure electric variants in the next five years.
With the company pushing for electrification of its vehicles, the company will also undergo a reorganisation of its manufacturing units as a result of which its plant at Castle Bromwich would be repurposed in future although it will continue to produce the existing vehicles till the end of respective lifecycles.
"As a proud member of the Tata ecosystem, with its industrial strength and worldwide standing, we are something truly unique at Jaguar Land Rover. Truly unique in the automotive industry. And now is the time to realise its potential," Bolloré said while addressing a virtual conference.
Jaguar Land Rover's aim is to achieve net zero carbon emissions across its supply chain, products and operations by 2039, he added.
Commenting on JLR's plans, Tata Sons Chairman N. Chandrasekaran said, "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."
Chandrasekaran, who is also the chairman of Tata Motors and Jaguar Land Rover Automotive plc, further said, "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."
As part of this ambition, the company is also preparing for the expected adoption of clean fuel-cell power in line with the 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.
Bollor said at the heart of JLR's 'Reimagine' plan will be the electrification of both Land Rover and Jaguar brands on separate architectures with two clear, unique personalities.
Under the plan, Land Rover will use the forthcoming flex Modular Longitudinal Architecture (MLA). It will deliver electrified internal combustion engines (ICE) and full electric variants in the future.
In addition, Land Rover will also use pure electric biased Electric Modular Architecture (EMA) which will also support advanced electrified ICE.
On the other hand, future Jaguar models will be built exclusively on a pure electric architecture, the company said.
In the next five years, Land Rover will have six pure electric variants of its luxury SUVs of three families of Range Rover, Discovery and Defender.
The first all-electric variant will arrive in 2024, the company said.
From 2025 Jaguar will become an all-electric luxury brand to 'realise its unique potential', the company said, adding the planned Jaguar XJ replacement will not form part of the line-up although the nameplate may be retained, as the brand looks to "realise its unique potential".
"Jaguar and Land Rover will offer pure electric power, nameplate by nameplate, by 2030. By this time, in addition to 100 per cent of Jaguar sales, it is anticipated that around 60 per cent of Land Rovers sold will be equipped with zero tailpipe powertrains," the company added.
In order to fully transition from a producer of IC (internal combustion) to fully battery first business, Bollor said,"We also need to reimagine our manufacturing operation and the associated supply chains. With a clear focus on value creation, we rightsize, repurpsoe, and reorganise. Simplification is the central theme here."
From a manufacturing perspective, he said,"We will maintain all our core plants and assembly facilities across the globe. By reorganising, we will simplify and rationalize our sourcing. This will also allow us to accelerate investments in circular economy supply chains as part of our sustainability goals and ambitions."
The company's Solihull plant will be the home of the future advanced Jaguar BEV platform while also being the manufacturer of the MLA architecture, he said, adding the Halewood unit "will be the destination for the new EMA architecture".
"We will enhance our benefit from our footprint in Slovakia and China which is already the most efficient plant in terms of quality as recognised by JD Power," he said.
On the future of the Castle Bromwich plant, Bollor said, "First, we will continue with production of our existing nameplates to the end of their lifecycle. Then, and in parallel, we are exploring opportunities to repurpose the plant which could benefit from a consolidation of our operational footprints currently scattered across the midlands of the UK."
In conjunction, he added,"We will enhance the bespoke customisation services, at special vehicle operations in order to continue to offer true tailoring for clientele of both brands."
The 'Reimagine' initiative will also lead to the creation of a flatter structure that is designed to empower employees to create and deliver at speed and with clear purpose, he said, adding to accelerate this efficiency of focus, the company will substantially reduce and rationalise its non-manufacturing infrastructure in the UK.
Bringing all these ingredients together, he said 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.
Ultimately, Jaguar Land Rover aims to be one of the most profitable luxury manufacturers in the world, he added. PTI RKL ABM ABM 02151915
