In next three years, Tata motors-owned Jaguar Land Rover plans to invest Rs 1.2 Lakh crore in order to stay ahead of Mercedes-Benz, BMW and Audi in the electric vehicles race.
The funds will be invested in 99-product programme which will include new-generation cars, annual updates, vehicles on the electric power-train and 4 new brands.
Last week Jaguar Land Rover told UK investor group that they will invest Rs 40,519 crore annually over the 3 years in order to being a comparatively smaller player to its German competitors.
In June 2008, Tata motors NSE had paid Rs 9,200 crore and at the end of FY 18, JLR will have Rs 42,20 crore of cash in its books and funding will be met through the same.
JLR will be coming with its all new premium transverse architecture for small SUVs, modular longitudinal architecture for EVs and modular engine architecture that will prepare the company for future regulatory challenges. JLR will be architecting the vehicle to a modular vehicle platform with electrification as a critical element and consolidated from 6 to 3 which will result in reduced cost.
Especially in UK, JLR has higher presence and it is facing the investment pressures when it is suffering from weak demand and quiet product cycle results in huge impact on cash flows. The investment will be accessible for distribution from profit after removing capital expenditure which is likely to remain negative in the near term.
The global luxury car market will might grow from 6.6 to 7.7 million units in the coming 6 years with the compounded annual growth rate of 2.6% told by JLR to investors. Jaguar Land Rover will be concentrating on expanding product portfolio and geographic footprint to being in higher volumes.