Jaguar LandRover

JLR shared in a circular to the media its commitment to the UK and electrification. The headline numbers are staggering, with an investment of £15bn over the next 5 years. However, to put it into context, investment (which is not the same as CAPEX, with some of the investment going through the P&L), is expected to be £2.6bn in FY23 (March 23) and was c.£2.0bn in FY22. As shown in our model, and revisiting previous presentations, it highlights this investment was always planned. In March 2021, JLR's investment expenditure was expected to be £3.0bn p.a. in the FY25/26 period, equal to 10% of revenue. Investment is currently running at 11-12% of revenue, making the £15bn headline number realistic. 

However, what this statement does show is the commitment to the UK and the Jaguar brand. There was a small risk that JLR would solely focus on its LandRover segment, having not launched a Jaguar vehicle in the last couple of years. JLR has committed to releasing more details of the new 4-door GT Jaguar later this year before going on sale in selected markets in 2024, for client deliveries in 2025. 

Separately, JLR is going to separate their business into three brands, Jaguar, Range Rover and Defender/Discovery.