Jaguar Land Rover (JLR) has announced plans to focus on wealthy North American buyers as it aims for 'double digit' revenue growth and adjusts its electric vehicle strategy. The West Midlands-based group, which also operates a large factory in Halewood, Merseyside, issued an update on its Reimagine strategy to transform the business amid the global shift to electric vehicles.
Targeting Wealthy US Buyers
JLR said it was targeting 'medium-term double-digit revenue growth by leveraging its House of Brands strategy to cater to different customer segments and diversify its sources of growth'. The company has accelerated its push into the electric vehicle market, but CEO PB Balaji stated there was 'no way' it would phase out petrol vehicles entirely, as they remain in demand, particularly in the US and the Middle East.
Changes to Vehicle Launches
The company announced changes to its upcoming Range Rover, Defender, and Discovery vehicle launches, with more hybrid options available alongside fully electric ones. JLR says there will be more 'flexibility' added to its electric vehicles built at Halewood, with more hybrid engine options. Further details on the latest Halewood-built Range Rover will be revealed later this year. Solihull-built Range Rover Electric and Range Rover Sport Electric models will be launched later this year and will include hybrid and full electric options.
US Market Focus
JLR recently signed a Memorandum of Understanding with fellow carmaker Stellantis to explore product and technology development opportunities in the USA. The company confirmed it would focus on the Defender brand in the US as part of that collaboration. The group, which suffered a massive cyber attack last year that shut down production, also plans to drive cost reductions of £1.7 billion over the next two years.
In addition to its key markets in the UK, Europe, and China, JLR will focus on the US. The company plans to design exclusive vehicles for the US market to cater for the 'extensive and increasing luxury opportunity there'.
CEO Statement
PB Balaji, JLR CEO, said: 'As we enter a critical business delivery phase of our Reimagine strategy, launching five new products over the next two years across our incredible House of Brands, now is also the time to evolve our plan to offer global markets greater propulsion choice to unlock growth and build resilience. To truly manifest the power of our brands, we will increase our focus on North America, our biggest market. The rising demand for luxury products coupled with the strong preference we see for our brands signals significant growth potential.'
'Apart from accelerating our existing offerings, we are also exploring new high potential segments for our Defender brand, which will allow us to offer tailored luxury products and experiences for even more of our US clients. Our aspiration, in the coming years, is to grow our US business to the size of the entire JLR business as it exists today.'
The Financial Times also quoted Mr Balaji as saying JLR would 'give everything' to boost its sales to 'millionaires and billionaires' in America.
