JLR targets double-digit revenue growth, £1.7 billion cost savings as Tata-owned carmaker bets on US expansion
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Tata Group's British luxury carmaker Jaguar Land Rover on Wednesday said it is targeting double-digit revenue growth in the medium term through increased propulsion flexibility and focus on North America.
Sharing an update to investors at its headquarters in Gaydon, UK, JLR Chief Executive Officer PB Balaji said the company will focus on maximising the strength of JLR's House of Brands, growth and building resilience in the next delivery phase of the company's 'Reimagine' strategy.
JLR is targeting medium-term double-digit revenue growth by leveraging its House of Brands strategy to cater to different customer segments and diversify its sources of growth, the company said in a statement.
It also reconfirmed its existing five-year commitment to invest 18 billion pounds in future technologies, vehicle platforms and transformation by FY29 (starting FY24), as it drives growth in a flexible propulsion, software and AI defined era.
The company also outlined cost saving plans with an aim to drive 1.7 billion pounds of savings and return breakeven volumes towards 3 lakh vehicles in the next two years.
"As we enter a critical business delivery phase of our Reimagine strategy, launching five new products over the next two years across our incredible House of Brands, now is also the time to evolve our plan to offer global markets greater propulsion choice to unlock growth and build resilience," Balaji said.
Apart from accelerating existing offerings, he said,"We are also exploring new high potential segments for our Defender brand, which will allow us to offer tailored luxury products and experiences for even more of our US clients. Our aspiration, in the coming years, is to grow our US business to the size of the entire JLR business as it exists today." As part of increasing propulsion flexibility across JLR's House of Brands, the company's Range Rover and Range Rover Sport, built at Solihull, will remain on the flexible modular longitudinal architecture (MLA) producing mild hybrid electric vehicle (MHEV), plug-in hybrid electric vehicle (PHEV) and full battery electric vehicle (BEV) vehicles with the launch of Range Rover Electric and Range Rover Sport Electric later this year.
JLR will reveal more on its first electric model built on its EMA platform at Halewood, Merseyside, later this year, from the Range Rover brand, it said, adding the upcoming EMA model from the Range Rover brand is planned to provide flexibility in the future through a full hybrid electric vehicle (HEV) propulsion offering.
The company further said a new model from the Defender family has been confirmed as the second vehicle to be launched on the EMA platform, which will now include the option of HEV as well as BEV in the future.
JLR also said it will focus on the Defender brand to deliver its growth aspirations in the US market as part of its collaboration with Stellantis, exploring new opportunities targeted at North American clients.
On the other hand, the Jaguar brand will become JLR's uniquely electric brand manufactured in the heart of the UK at Solihull. Jaguar's new luxury four-door 'GT Type 01' will be revealed later this year.
On the company's focus on North America as a growth engine, JLR said alongside its key markets in the UK, Europe, and China, it will "focus on the US as a priority growth region to cater to the extensive and increasing luxury opportunity there by designing exclusive offerings for that market and also strengthen its supply chain resilience"