It Isn’t Easy Being Green, So Jaguar Land Rover Shouldn’t Rush It
The British carmaker is jumping on the EV bandwagon, but will its path to a dramatically smaller footprint ultimately dismay investors?
Getting it together.
Photographer: Simon Dawson/BloombergThe markets are abuzz with the promise of millions of new electric cars. Investors love the sound of anything green. In keeping with the trend, Jaguar Land Rover Automotive Plc — which is owned by India’s Tata Motors Ltd. — announced an overhaul on Feb. 15: It will go mostly electric in the next decade or so, setting aside £2.5 billion ($3.4 billion) annually for the move. The company promises to have net zero carbon emissions across the board by 2039. It’s a big, bold, green strategy for a company that has spent the last few years aggressively reining in its costs and investment spending. Still, with all the fanfare, it’s worth considering how realistic these plans really are.
As part of its “Reimagine” plan, the British carmaker has set ambitious timelines. Jaguar will be an all-electric luxury brand by 2025. Land Rover will bring out six purely electric vehicles, with the first model out in about three years. By 2030, it’s hoping around 60% of Land Rovers sold will be equipped with zero tailpipe powertrains. JLR is even preparing for clean fuel-cell power with prototypes expected to hit U.K. roads within the next 12 months.