Tata Motors to invest huge amount on Jaguar Land Rover – Rs 120,000 crore by 2021
Fortunes of the British brand Jaguar Land Rover have turned around ever since Tata Motors took over. JLR will launch 4 new models by FY24 taking total offerings from 12 to 16.
Tata Motors owned Jaguar Land Rover (JLR) plans heavy investments of £13.5 billion (around INR 1.2 lakh crore). This investment will be spread over a period of 3 years and will be directed towards launch of new products, enhanced technological developments and capacity addition.
JLR currently has a portfolio of 12 products which will be taken upto 16 with the four new models being planned while the company is also targeting 99 different product actions by FY24.
Initial investment of £ 4.5 billion during FY19-FY21 would be likely to increase company turnover by 12 – 13 percent. Heavy electrification plans are on the cards along with the development of a new platform modular longitudinal architecture (MLA).
By 2025, the company is also planning an ICE – Internal combustion engine, BEV – Battery electric vehicle and PHEV – Plug in hybrid electric vehicle. Of the total investment, 51% will be directed towards new products while 27% will be spent on capacity and other activities. Electrification of vehicles will command 13% of total investment along with 9% being directed towards new powertrain options.
This new line of investment strategy follows the successful investment done over FY11 to FY18 wherein the company invested £20 billion also in new production development, advanced technology and capacity enhancements.
The four new products being planned include the I-PACE and new Defender along with 2 more EVs and upgrades of existing models or new versions of older models. Product actions will also be enhanced to 38 by FY21 and thereon to 42 by FY24. With these investments, JPR plans to stay ahead of Mercedes Benz, Audi and BMW in the development of electric vehicle.