Key facts
- Jaguar Land Rover now forecasts a 4% profit margin for fiscal year 2027, a reduction from its previous 5-7% target.
- The company is reversing plans to make one factory exclusively for electric vehicles, opting to produce hybrid and petrol versions of new models.
- JLR aims to significantly increase its sales in the US, its largest market, potentially doubling its business there.
- Shares of parent company Tata Motors Passenger Vehicles fell as much as 9.6% following the announcement.
- JLR reiterated its commitment to investing £18 billion between 2024 and 2029 and targeting double-digit revenue growth.
Jaguar Land Rover has reversed plans to convert one of its factories to exclusively produce electric vehicles, opting instead to manufacture petrol and hybrid versions of new models, including smaller SUVs. This strategic shift aims to bolster growth in the US market, which JLR's CEO PB Balaji described as its biggest market with significant growth potential. The company intends to increase US sales to match its current global business size, implying an additional 250,000 vehicles sold to wealthy Americans. This move comes as carmakers globally delay their transition to EVs due to shifting regulations and incentives. JLR reiterated its commitment to double-digit revenue growth in the medium term and its £18 billion investment plan from 2024 to 2029. The company's revised forecast of a 4% profit margin for fiscal year 2027, down from a previous target of 5-7%, has led to a significant drop in the shares of its parent company, Tata Motors Passenger Vehicles. The decision to produce more hybrids rolls back a 2023 plan to make the Halewood factory electric-only. JLR is also considering manufacturing in the US and has delayed the launch of its electric flagship Range Rover by a year.