Tata Motors-owned Jaguar Land Rover (JLR) has revised its investment plan to £18 billion until 2028. The earlier announced investment for the period was £15 billion.
The company will be using the investment for product development. In FY24, JLR invested £3.3 billion, while in FY25, the company plans to invest £3.5 billion, becoming net cash positive from FY25.
“We recommit to a 10 per cent EBIT margin in FY26 and will grow from there,” the company said in an Investor Day presentation.
The company had reported a free cash flow of £892 million for Q4 of FY24. The net debt for JLR was reduced to £0.7 billion. The revenue was up by 11 per cent to £7.9 billion in Q4. The company stated that it expects to become net zero during FY25.
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“We have delivered a record financial performance for the company, generating a free cash flow of £2.3 billion, enabling us to reduce net debt to £0.7 billion,” said Adrian Mardell, Chief Executive Officer of JLR.
In a press release, Tata Motors said JLR and China-based Chery have signed a Letter of Intent to strengthen their electric portfolio through their joint venture CJLR. Under the proposed new licencing agreement, the CJLR joint venture will pivot to produce an advanced portfolio of electric vehicles exclusively under the Freelander name, based on Chery’s EV architecture.
“Marking the beginning of a new strategic phase for CJLR, Freelander will become a brand reborn under licence from JLR as part of a new value creation system independent from both Chery’s existing portfolio and JLR’s modern luxury House of Brands,” the statement said.
JLR’s Freelander brand was a Land Rover vehicle that was successfully produced between 1997 and 2015. It was succeeded by the Discovery Sport in 2016. In its reborn CJLR form, Freelander will offer a range of mainstream electric vehicles, initially sold in China through a distinct network but over time destined for global export. The vehicles will be designed in collaboration with both Chery and JLR’s Creative teams to create a new positioning in the rapidly growing China mainstream New Energy Vehicle (NEV) market. The products will be built at CJLR’s existing manufacturing facility in Changshu.
JLR recently announced that it will locally manufacture its Range Rover and Range Rover Sport models in India, cutting the luxury car prices by up to 20 per cent.