Jaguar Land Rover (JLR) has announced plans to invest £18 billion in its electric and hybrid vehicle production over the next five years, an increase of £3 billion from its initial announcement in April 2023. The increased investment aims to balance the production of both electric and combustion engine models.
Originally, JLR intended to convert its Halewood plant in the UK solely for electric vehicle production. However, the Wolverhampton engine plant, which currently manufactures combustion engines, will now also produce electric drive units and battery packs for the next generation of JLR vehicles.
In February 2024, JLR shifted its strategy from launching six all-electric cars by 2026 to focusing more on hybrids and plug-in hybrids due to a slowdown in demand for fully electric vehicles. JLR CFO Richard Molyneux explained the company’s approach during an investor day in June: “Until one powertrain technology properly wins globally we are going to continue to have to invest in multiple powertrains at the same time, so that probably will drive investment up.”
The company plans to invest an additional £500 million this year, raising the planned investment from £3 billion to £3.5 billion. In subsequent years, JLR expects to increase investments by £1 billion annually. According to Molyneux, 65% of the investment between now and 2028 will be directed towards electric mobility.
The revised roadmap includes the launch of four battery electric vehicles (BEVs) by 2026, including the Range Rover Electric SUV and the electric Range Rover Sport, both based on the MLA platform, which supports combustion engines, hybrids, and battery-electric drives. Details about the BEV models on this platform have not yet been disclosed, but the electric SUV is expected to be launched this year.
The Range Rover Electric is anticipated to be the first of these models to go on sale next year. However, JLR has indicated it is willing to delay the launch to ensure the vehicle meets its standards. Media reports suggest the company has received around 38,000 pre-orders for the electric Range Rover.
JLR also plans to introduce two or three electric Jaguar models using the Jaguar Electrified Architecture (JEA). Currently, there are no details about these models. The all-electric Jaguar I-Pace, the brand’s only electric model to date, will cease production in 2025.
Additionally, JLR has revived its Freelander brand for future electric cars, which will be based on a platform from its Chinese partner Chery, likely the Chery E0X. These vehicles will be produced for the CJLR (Chery-JLR) joint venture and initially sold in China under the Freelander brand, with plans to export them worldwide later. JLR has previously confirmed it will use Chery’s M3X and E0X modular platforms for future battery-electric and plug-in hybrid vehicles.
