Tata Motors Group has announced its investment outlay of Rs 43,000 crore in FY2025 for new products and technologies. While the company has earmarked about Rs. 8,300 crore for developing Tata models, the auto giant will invest the majority chunk into its British arm, Jaguar Land Rover (JLR). The automaker plans to invest about 3.5 billion Pounds or about Rs. 35,000 crore, in JLR. Notably, the investment in JLR has increased by 6 per cent from 3.3 billion Pounds or Rs. 38,000 crore, in FY2024.
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The fresh investment will be utilised towards the new product plans under the JLR brand as the luxury automaker is on the cusp of transformation. JLR announced last year its plans to divide its core models into standalone brands namely; Jaguar, Range Rover, Defender, and Discovery.
Speaking about the investment, PB Balaji, CFO – Tata Motors Group, said, “Investment by JLR ended at 3.3 billion pounds (more than INR 33,000 crore), and Tata Motors did more than Rs. 8,200 crore. So, the total we ended was at about Rs. 41,200 crore investment in FY24. Coming to FY25, for JLR, the investment will be more like 3.5 billion Pounds, broadly Rs. 35,000 crore, because all the product plans we had are coming together (next year).”
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He further added, “There is a phasing issue we are dealing (with), and these products have to (be) launched on time”. For Tata Motors, Balaji said, “We will repeat the INR 8,000-odd crore range. So, JLR is about 6 per cent increase and Tata Motors is flat. So, that’s how the investment is (for FY25)”.
JLR’s next generation of vehicles will have a significant share of electric propulsion. The brand already has a new Jaguar electric car planned, while the Range Rover Electric is also in the works with a global debut later this year, while sales will begin in FY2026.
Speaking about the new investment, Richard Molyneux, CFO – Jaguar Land Rover, said, “FY2026 is the year when our new product starts to hit. We will have Range Rover BEV in the market by then and other products as well. At that point in time, we start to replace some of the vehicles on which we make less money with brand-new vehicles, which normally helps EBIT levels.”
The Range Rover Electric is nearing its introduction and will be the flagship RR model in the brand’s lineup. Speaking about the Range Rover BEV, Molyneux said, “We’re doing it differently. This is not a BEV (battery electric vehicle) which is going to get sold as a Range Rover. This is the Range Rover with a BEV powertrain”.
“BEV happens to give the exact combination of power, quietness and serenity that is perfect for the Range Rover brand. So, this will be the top-end of Range Rover”
JLR also plans to go up in terms of price points with the Range Rover and Range Rover Sport brands. Furthermore, the automaker will introduce the Defender OCTA later this year as the most powerful and expensive offering in the Defender lineup. The Defender OCTA is slated for a global debut in July this year.
