Jaguar Land Rover Lines Up Massive Investment | CORPORATE ETHOS

Jaguar Land Rover Lines Up Massive Investment

By: | June 25, 2018

June 25: Tata’s Jaguar Land Rover (JLR) is all set to make the largest investment in the company’s history. An ET report said that, in the next three years, the company will make an investment of Rs 1.2 lakh crore in the country. With the investment, the company intends to stay ahead of its rivals Mercedes- Benz, BMW and Audi in the electric vehicles race. JLR would also look to move forward in the traditional luxury car market, thereby staying close to its German rivals.

Things including annual updates, new- generation cars, electric vehicles and four new brands will comprise the extraordinary 99- product programme for which the funds will be used. The four new brands will include the i-Pace and the Defender. There was news that there will be two more EVs from the company as per the upcoming programme.

As per the statements made by JLR to the UK investor fraternity recently, a minimum amount of Rs 40, 519 crore will be invested by the company annually in three years. The company, which is a smaller player considering its rivals, has been investing huge in products and capacity for the future.

An amount of Rs 42, 320 crore was what JLR had at the end of the FY18. In June 2008, Tata Motors had paid $2.3 billion for jaguar Land Rover. In FY18, JLR’s capital expenditure to sales ratio stood at 16.2% which is quite high compared to the 11% of BMW and 12.1% of Daimler’s sales. According to the estimates as reported, the capital expenditure to sales ratio for the upcoming three years of investment is expected to be 16.2%, 14.8% and 13.6%.

In order to reduce cost, the company will combine vehicle architecture from six to three, thereby transforming the vehicle platform by including electric power train. The company is all set to introduce new premium transverse architecture for small SUVs, modular longitudinal architecture for EVs, and even modular engine architecture which will prepare the company for future regulatory challenges.

As much as 51% of the total capex investment of Rs 1.20 lakh crore for the next 3 years will be spend on products.