JLR to Invest $669 Million in Retooling UK Plant for Electric SUVs

Jaguar Land Rover (JLR), owned by Tata Motors, has announced a £500 million ($669 million) investment to retool its Halewood plant in England, setting the stage for manufacturing electric SUVs.  This major retooling will position the plant to start producing electric SUVs, as JLR transitions towards an all-electric future.

Halewood’s Electric Shift

JLR has already poured £250 million into the Halewood facility, located near Liverpool, over the past year. Now, the company plans to double down on its efforts, bringing total investment in the plant to £500 million. Halewood, which currently produces models like the Range Rover Evoque and Discovery Sport, will eventually become JLR’s first plant to go fully electric. Alongside electric vehicles, the factory will continue producing hybrid and combustion-engine models for the time being.

Bigger Price Tag for Electrification

While JLR has committed to electrifying its lineup, the path ahead comes with some challenges. Last month, the company revealed that the shift to EVs will be more expensive than previously expected, mainly due to weaker consumer demand and the need to keep making combustion-engine and hybrid models for longer. In light of these hurdles, JLR now plans to invest £18 billion over the next five years to electrify its range, with plans to offer electric options for all its models by the end of the decade.

Industry Trends

JLR’s announcement follows a broader slowdown in the European auto industry’s rush toward EVs. Carmakers like Volvo and Mercedes-Benz have scaled back their ambitions, with both pulling back from their initial plans to go fully electric by 2030. This shift comes as consumer demand softens and countries like Germany and Sweden cut EV subsidies.

Conclusion: In conclusion, the Halewood factory’s transformation represents JLR’s journey toward electrification, though the company has not yet provided a timeline for phasing out hybrid and combustion-engine models. As part of its revised plans, JLR will reduce the number of fully electric Land Rover models planned by 2026 from six to four. 

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