Jaguar Land Rover intends to invest 3 billion pounds annually by FY26

13 Jun 2023 , 11:03 AM

According to an investor presentation by the firm, Jaguar Land Rover, which is owned by Tata Motors, intends to invest 3 billion pounds annually while aiming for revenue of over 30 billion pounds by FY26. 

Jaguar Land Rover (JLR), which produces luxury Jaguar vehicles as well as SUVs like Range Rover, Defender, and Discovery under the Land Rover brand, anticipates revenue of around 28 billion pounds in FY24.

JLR’s upcoming presentation on stock exchanges was made public by Tata Motors.

JLR had sought to become a more agile firm with a streamlined manufacturing operation and an intention to achieve positive cash net-of-debt by 2025 under its ‘Reimagine’ strategy, which was designed to solve the key difficulties facing its business.

JLR stated that ‘Reimagine will deliver’ and that its investment aim is 3 billion pounds annually in its ‘Investor Day 2023’ presentation.

The business expects free cash flow to reach 2 billion pounds by FY24 and to ‘continue to be significantly positive thereafter.’

The corporation stated that it aims to generate more than 28 billion pounds in revenue in FY24 and more than 30 billion pounds in FY26.

JLR reported 22.81 billion pounds in revenue for the fiscal year that ended on March 31, 2023.

Additionally, the EBIT margin will increase from over 6% in FY24 to over 10% in FY26.

JLR stated that the Range Rover is ‘the vanguard of our EV transformation and profit generation’ and that the Jaguar brand will convert into a ‘radical, modern luxury EV brand in 2025’ as part of its electrification project.

The corporation announced earlier this month that it would spend 15 billion pounds over the course of five years on electrification and digital transformation.

Over 11,300 employees and partners have been retrained for electrification at the company’s Halewood plant in the UK, and an additional 11,625 are enrolled in training. The facility will produce products exclusively using electricity.

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