Jaguar To Invest $18 Billion Over Next 3 Years In EV – Anti-Diesel Push

JUN 26 2018 BY DOMENICK YONEY 14

Sales are down, but interest in its electric product is sky high

Diesel is dying, petrol-powered vehicle bans are looming in the distance, and sales at Jaguar Land Rover, the UK’s largest automaker, are flagging. These three elements are all factors weighing on the minds of executives at the luxury brand, and so steps are being taken to address the challenges.

As usual, the fight for a brighter future starts with talk of investment. In this case, we’re talking a whopping 13.5 billion pounds ($18 billion). That cache of cash is said to be split into equal parts of 4.5 billion pounds ($5.955 billion) over the next three years and put towards new products and technology advancement. After this period, the company will moderate its spend at about 13 percent of sales.

Though its current portfolio of electric vehicles is small, the battery-powered efforts at the Coventry-based company have a pretty high profile.  Its first mass-produced electric vehicle, the I-Pace is set to begin deliveries after receiving high praise from reviewers — including from us and our sister site Motor1.com — and a stack of orders (20,000 vehicles for Waymo alone). Not only does it have a team in the premiere electric racing series, Formula E, it will have its own road-racing series packaged with that one, the Jaguar I-Pace eTrophy. To top off all that, its E-Type Zero Classic, an electric conversion of perhaps its most famous model, just had a prominent place in the royal wedding of Prince Harry and Meghan Markle.

Jaguar I-PACE Concept & E-type Zero

It stands to reason, then, that the automaker will continue in its electric efforts and use a chunk of this investment to do it. Although no new electric models have yet been announced, rumors are swirling that there will be an electric Land Rover based on the I-Pace, and there have been hints of an electric supercar coming.

With an entire gas-powered paradigm to upset and replace, the potential for future sales is huge. If Jaguar can have the sort of success it’s seeing with the positive response to the I-Pace, there’s little doubt things will be looking up for both the British company and its Indian parent Tata, to which it contributes a significant percentage of its profits.

Source: Nikkei

Categories: Jaguar

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14 Comments on "Jaguar To Invest $18 Billion Over Next 3 Years In EV – Anti-Diesel Push"

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That is a sizable investment… Cannot wait to see the new vehicles they come up with…

do or die. Big gas and diesel guzzler vehicles in their line-up. you imaging telling a rich person their car is not allowed in a section of town!

So it is really $6B over three years then 13% of sales.

New factories for battery cells or at least battery pack assembly?

Or are they simply going to sign contracts for battery cells/packs over X amount of years like VW?

Sounds like the final BEV capacity per year will be much less than $18B implies.

The way its worded in the article, it sounds like these are R&D spendings, i.e. pretty much orthogonal to production capacity?

Regarding the latter, spendings shouldn’t differ all that much though between building their own factories, or signing long-term contracts with external suppliers, who build the required factories in turn…

I don’t think so. I think even a sizable auto maker doesn’t spend that much on R&D in a year, unless the “D” part of that includes tooling up costs for new models of PEVs (Plug-in EVs). As I understand it, even the largest auto makers typically develop only about 5 new models at the same time, and Jaguar isn’t that big an auto maker.

With that level of investments, they’re probably looking at building factories for battery cells or at least battery pack assembly, and converting one or more auto assembly plants to specialize in producing PEVs.

Just my opinion, of course.

“As I understand it, even the largest auto makers typically develop only about 5 new models at the same time”

That depends on what you consider “a new model” Like GM with the Sierra/Silverado, which is more then a dozen specific models, and draws on the best and brightest GM has. Programs like this GM would have just a couple at a time, but something like the Bolt, which was a very small team, and a car destined for low/medium production GM could have many similar programs going through R & D at the same time.

Grace pace space
Cant think of another core brand that is better suited to bev.
Only jag and volvo have announced a phase out of fossil r&d not just added electrification.

I guess you’ll see Aston Martin with them soon. It cost a lof of money to develop new internal combustion engines. Small companies with low volume sales are probably better off going electric as soon as they need a new ICE generation.
Small companies have usually bought engines from the likes of BMW, Mercedes and so on, or continued with small improvements of an existing Rover / Land Rover Jaguar engine.

Yes, Aston announced some time ago that they’re going electric. The Rapid-e is due soon, followed by at least one EV Lagonda. Not forgetting the Valkyrie project. Regular cars will develop PHEV’s over time, then EV options. Expect them to keep their ICE options too though, they’ve not long collaborated with (and sold some shares to) Mercedes group, plus Aston appreciates that a car needs a soul and no EV will ever have the soul of a V8 or V12.

I hope Jaguar is serious; $18 billion in only 3 years is a very serious investment!

Jaguar has made a very impressive entry into the BEV market, with its I-Pace. Here’s hoping they follow up on that with more well-built, compelling BEVs!

Go Jaguar!

That’s a bit like saying Porsche paid for the development of the latest VW Golf. They’re all one and the same. JLR is part of TATA group and they do share technology.

Information of their plans has been out there for a while now, it just seems like nobody on here seems to actually pay any attention to the automotive industry other than Tesla, unless there’s an opportunity to slate somebody else.

MLA platform means there’s going to be an XJ BEV and a Road Rover, among other things. JLR is investing massively into EV’s, as this article shows.

The investment in question is for all of Jaguar Landrover (a single company), not just the Jaguar brand, and I suggest you clarify the article title & elsewhere to reflect that. This is relevant, because the majority (IIRC >70%) of JLR vehicles are Land Rover SUVs, not Jags, and virtually all of them are Diesels.

The big problem company management has admitted to, and the reason for the accelerated investment, is that sales didn’t go as high as they expected in 2017, and the reason for that is that 87% of their output is Diesels — an unpopular choice these days.