Amid the declining demand for diesel vehicles, Jaguar Land Rover has decided to spend £2.5bn ($3.49bn) annually towards developing electric vehicles. The UK-based company under new CEO Thierry Bollore has unveiled its new global strategy termed as “Reimagine” under which the carmaker will become a net zero carbon business. The strategy is in line with the sustainability model being undertaken by most carmakers including Tesla and Toyota. The company is developing clean hydrogen fuel-cell power and is focusing on rolling out pure electric models for each of its brands in 2024 including its iconic Land Rover model and has set a goal to achieve net zero carbon emissions by 2039. The company has also set a target of double-digit EBIT margins and positive cash flow, aiming to achieve zero net debt by 2025. This is after the company had posted a pre-tax profit of £439mn ($612.4mn) in the last quarter of 2020 buoyed by sales in China. JLR is a wholly-owned subsidiary of the Tata Group and will leverage this to enhance its sustainability goals to reduce emissions.
JLR’s 6.875% 2026s
and 4.5% 2027s
are up 0.53 and 0.04 to trade at 113.2 and 98.1, yielding 4.16% and 4.83% respectively.
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