UK Jaguar Land Rover Goes All In... Luxury Car 'Electric Vehicle War'

British luxury car manufacturer Jaguar Land Rover announced on the 19th (local time) that it will invest "?15 billion (approximately 25 trillion KRW) over the next 5 years " to switch all its vehicles to electric cars. Jaguar Land Rover stated that it will convert its Land Rover assembly plant in Halewood, UK, into an electric vehicle-only factory and will begin full-scale electric vehicle sales starting with the launch of the first Range Rover electric vehicle next year.

Adrian Mardell, CEO of Jaguar Land Rover, said in a statement on the day, "(We have) taken an amazingly exciting first step into the new era of electric vehicles." Bloomberg reported that this is the first time in two years since Tata Group, Jaguar Land Rover's parent company in India, first announced Jaguar Land Rover's electric vehicle market entry plan in 2021, that detailed plans have been revealed.

Jaguar Land Rover also plans to convert its factories in West Midlands and Wolverhampton into production plants for electric motors and related components. Jaguar Land Rover said, "The 25 trillion KRW will be distributed and invested in autonomous driving, artificial intelligence (AI), digital technologies, and more."

Jaguar Land Rover aims to produce 100% of Jaguar models as electric vehicles by 2030 and convert 60% of Land Rover models to electric vehicles. Jaguar Land Rover explained that its relatively late entry into the electric vehicle market compared to competitors was due to the semiconductor supply shortage caused by the COVID-19 pandemic and the resulting production disruptions.

They also presented specific performance targets. Jaguar Land Rover aims to turn net cash flow positive by the fiscal year 2025 and exit the deficit structure by 2026, achieving double-digit profits.

Bloomberg forecasted that the decision to produce next-generation electric vehicle core models in the UK will revitalize the British manufacturing industry, which has been struggling due to the boomerang effect of Brexit (the UK's withdrawal from the European Union).

[Image source=Reuters Yonhap News]

Luxury car brands such as Ferrari, Maserati, and Lamborghini, which have emphasized the unique appeal of internal combustion engine vehicles as their main competitive advantage, are accelerating their transition to electric vehicles. They have abandoned their insistence on internal combustion engines and surrendered in line with the era's trend to prepare for the paradigm shift to electric vehicles. The European Union (EU) has finally adopted a 'phase-out of internal combustion engine vehicles' bill, which bans carbon emissions from new cars sold within the region starting in 2035.

From 2030 to 2034, new cars sold within the EU must reduce carbon emissions by 55% for passenger cars and 50% for vans compared to 2021 levels, and from 2035, carbon dioxide emissions from new passenger cars and vans will be completely banned. In effect, sales of existing internal combustion engine vehicles such as gasoline and diesel cars will become impossible.

Ferrari, the epitome of high-end sports cars, announced a four-year plan (2022?2026) last year focused on significantly expanding the proportion of electric vehicles in line with the major shift to the electric vehicle era. Ferrari plans to launch its first pure electric vehicle in 2025 and increase the share of hybrid and electric vehicles to 60% of total production by 2026 and 80% by 2030. To this end, it plans to expand its Maranello production plant and create a third production line dedicated to hybrid and electric vehicles. Ferrari's first pure electric vehicle model under development is scheduled for release in 2025.

Mercedes-Maybach and Porsche both unveiled new electric vehicles this week at the Shanghai Motor Show in China. The 'Maybach EQS SUV,' unveiled by Mercedes-Maybach on the 17th at the Shanghai Motor Show, is the brand's first pure electric vehicle model, priced at 200,000 euros (approximately 291 million KRW).

Italian luxury car brand Maserati has set a goal to produce and sell only 100% electric vehicles starting in 2030. Maserati plans to first launch the pure electric vehicle model 'Folgore,' which means 'lightning' in Italian, this year.

This content was produced with the assistance of AI translation services.