The money will be deployed for the development of flex (internal combustion engine, hybrid) models and battery electric vehicles (BEVs) in line with the company’s “reimagine” strategy where electrification will be a key focus. Most of the product development expenses will be skewed in favour of BEVs over the next four years, it said.
While it has increased the planned investment, the company expects to sustain the return on capital employed (RoCE). It was 21.3% in FY24 and is expected to be around 22% in FY25, according to the presentation.
JLR has an Ebit (earnings before interest and tax) target of 10% for FY26, compared with 8.5% in FY24. This will be driven by new products, operational efficiency and brand investment.
In a separate filing with the stock exchanges, Tata Motors said Jaguar Land Rover and China's Chery Automobile Company have signed a letter of intent to license the Freelander brand to their equally owned 12-year-old joint venture, CJLR, to develop electric vehicles in China.
Under the proposed agreement, CJLR will produce an advanced portfolio of electric vehicles based on Chery’s EV architecture, exclusively under the Freelander name, Tata Motors said.
Under the Freelander brand, CJLR will offer a range of mainstream electric vehicles that will initially be sold in China, but over time will be exported as well, the company said.
The products will be built at CJLR’s existing manufacturing facility in Changshu, the company said.
These 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 market, it said.
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