Jaguar Land Rover aims for 400,000-unit vehicle production in FY2024
Jaguar Land Rover, the well-known Tata Motors-owned luxury vehicle brand, has reportedly outlined an ambitious 5-year strategy that would see it focusing on volume production as well as profitability.
In line with its emphasis on digitalization for volume planning, the company, starting Q3 FY2023, is aiming to produce 400,000 units in FY2024 alone.
According to JLR’s “Reimagine” plan, the sales is projected to increase to over 30 billion pounds (Rs 305,790 crore) in FY2026 from an estimated 28 billion pounds (Rs 285,404 crore) in FY2024.
It has also been revealed that EBIT margin is anticipated to rise to 10% by FY2026 from an estimated 6% in FY2024.
In fact, the free cash flow is expected to be around 2 billion pounds ($20,386 crore) in FY2024 and to remain positive going forward, including the net debt zero starting in FY2025.
To that end, JLR has proposed an investment of 3 billion pounds (Rs 30,579 crore) annually.
Additionally, it predicts that by FY2026, the demand for highly profitable vehicles, including the RangeRover would surge from its current 12% to 17%, and that the market share for moderately profitable vehicles, such as the Velar will jump from 5.5% to 5.8%, respectively.
Additionally, it might halt the manufacturing of less lucrative models, including the Jaguar Sedan. Apparently, this is based on the fact that the Range Rover, Range Rover Sport, and Defender account for 76% of the company’s overall order book.
Furthermore, the company rose its average revenue per unit to 70,000 pounds (Rs 71.35 lakh) in FY2023 from nearly 43,000 pounds (Rs 43.82 lakh) in FY2019.
JLR, in course of its electrification strategy, has also begun accepting bookings from selected clients for the forthcoming electric Range Rover, which is likely to be launched next year.
