Published Date : Jun 25, 2018
The global automotive industry is geared toward some paradigmatic shifts brought about by globally changing regulatory landscape and rapid technological advances. Regulatory and geopolitical changes are being underpinned by the incessant drive for low-carbon automotive technologies, notably hybrids and electric vehicles. This has also led some prominent regional players to include electrification as the key element of its vehicle platforms and upgrade their models. Against this background, Jaguar Land Rover (JLR) Automotive, a U.K.-based company owned by Tata Motors, has in June 2018 announced its plans to pour in Rs 1.2 lakh Cr (£4.5 billion) in the next three years (from 2019 to 2021).
Funds to be Committed toward Developing New Generation of Electric Powertrain
Only last week the automaker announced that it intended to invest £4.5 billion, or Rs 40,519 crore annually over the period. Considering the size of the company, the quantum of funds allocated is ambitious. These funds will be committed toward a large swathe of operational and strategic areas. In particular, the Birmingham-based car maker will use the corpus to develop next-generation vehicles including those with electric powertrain, four new brands, and two more electric vehicles, apart from spending them on annual updates in the next there years.
JLR geared toward Strategic Moves for upping Share of Electric and Hybrid Vehicles in its Portfolio in Near-Term
In its strategy to electrify all its new vehicle models by 2020, JLR has planned to invest in developing an innovative model, specifically based on modular longitudinal architecture, by 2025. The strategy seems a crucial piece of its larger goal of getting ahead of some German rivals and put forth tough competition to global stalwarts in the electric vehicle market such as Audi, BMW, and Mercedes-Benz. According to experts, its portfolio of fully electric and hybrid vehicles is estimated to contribute around 5% of its global sales in the near term.
Of note, these strategic moves comes at a time when several vehicle makers across Europe are increasingly modifying their vehicular technologies to conform to the rising stringent emission standards.