Mumbai - Tata Motors has announced a significant increase in its investment plan for its UK subsidiary, Jaguar Land Rover (JLR), by £3 billion, extending until fiscal year 2028. In an investor presentation, the company revealed that it plans to invest £18 billion from FY24 to FY28, up from the previous £15 billion.
The increased investment will be directed towards developing flexible models including internal combustion engines, hybrids, and battery electric vehicles (BEVs). This strategy aligns with Tata Motors' "reimagine" initiative, where electrification plays a central role. The majority of the investment in product development over the next four years will be focused on BEVs.
Despite the higher investment, Tata Motors aims to maintain a sustainable return on capital employed (RoCE). In FY24, RoCE was 21.3%, and it is projected to reach around 22% by FY25. The company also targets an immediate EBIT (earnings before interest and tax) of 10% by FY26, driven by new products, operational efficiency, and brand investment, compared to 8.5% in FY24.
Additionally, Tata Motors disclosed in a separate filing that JLR and China's Chery Automobile Company have signed a letter of intent to license the Freelander brand to CJLR, a 50:50 joint venture. This joint venture will focus on developing electric vehicles in China.
Under the proposed agreement, CJLR will produce an advanced lineup of electric vehicles based on Chery’s EV architecture, exclusively under the Freelander brand. The collaboration aims to leverage Chery’s strong market position in China and JLR’s heritage and design expertise.
The revitalized Freelander brand will offer a range of mainstream electric vehicles initially sold in China through a dedicated network, with plans for global export in the future. These vehicles will be designed in collaboration with both Chery and JLR’s creative teams to establish a new presence in China's rapidly growing mainstream New Energy Vehicle (NEV) market.
Products will be manufactured at CJLR’s existing facility in Changshu, marking a new strategic phase for the 12-year-old joint venture. This move is expected to create new value independently from both Chery’s existing portfolio and JLR’s luxury brands.
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