Annual report 2023
JLR ends this financial year in a stronger position, with a portfolio of attractive products, a healthy bank of customer orders, and a clear strategy, to reimagine its renowned British brands for global clients.
NATARAJAN CHANDRASEKARAN
CHAIRMAN
The financial year 2022/23 has posed a difficult business environment with several headwinds for the company. Jaguar Land Rover has had to contend with the shortage of semiconductors and challenges in energy supplies in the aftermath of the war in Ukraine leading to a battle against inflationary pressures.
In this context, I am pleased that the company is progressing well in its transformation journey and is set to become a modern luxury vehicle business, with sustainability at its heart.
After a challenging start in the first half of the financial year 2022/23, the company has delivered a resilient performance in the second half, with a consistent rise in wholesale units. The company’s efforts to address the supply chain challenges have started to yield results, enabling the company to increase the production of the New Range Rover, New Range Rover Sport, and Defender vehicles.
This improving trend resulted in full year revenues for FY23 of £22.8 billion, up 24.5 per cent vs. FY22. Meanwhile the FY23 Adjusted EBIT margin of 2.4 per cent and profit before tax of £97 million was a marked improvement from the (0.4) per cent Adjusted EBIT margin and £(455) million loss before tax in FY22. Full year wholesales of 321,362, in FY23 were up nine per cent compared to a year ago.
Key milestones driving the transformation this year were the successful global launch of the award-winning New Range Rover Sport, joining the New Range Rover in defining the company’s modern luxury philosophy to the world, as well as expanding Defender collection with an eight-seat 130 model and introducing new electric hybrid powertrain to the Range Rover collection.
The transformation of Jaguar into an all-electric luxury brand is on track with first new vehicles to be launched in 2025.I am also pleased to see Jaguar Land Rover’s collaboration and active partnerships enabling it to leverage synergies across the Tata Group of companies.
I also would like to take this opportunity to thank Thierry Bolloré, for his contributions to Jaguar Land Rover during his tenure as the CEO.
JLR ends this financial year in a stronger position, with a portfolio of attractive products, a healthy bank of customer orders, and a clear strategy, to reimagine its renowned British brands for global clients.
I remain excited for the electrified future of all our automotive brands, and by the passion, energy, and commitment of all our colleagues and partners, to achieve more, not only for our business and clients, but our communities too and to set new standards in technology, manufacturing, and sustainability.
Together we have achieved much during the past year, in the face of formidable challenges. The coming year is set to be as challenging, but as we look to important milestones in our Reimagine journey, I feel confident with the support of the committed, passionate and skilled people of this company, we will realise them together.
ADRIAN MARDELL
INTERIM CHIEF EXECUTIVE OFFICER
Throughout the financial year 2022/23, we have continued to deliver Reimagine – our strategy to realise our vision to be proud creators of the most desirable, modern luxury brands, for the most discerning of clients.
We have maintained momentum under the extraordinary global pressures of semiconductor constraints, inflation, and geopolitical instability, alongside ongoing effects of Covid-19.
While we have not escaped the effects of these global factors on our operations, I am pleased we delivered a resilient performance during the year, to deliver on our wholesale commitments in quarters three and four and return a profit in quarters three and four.
This performance has laid the foundations for our future success and growth, and the continued realisation of our strategy.
As we reimagine how we engage with our clients to serve them with a true modern luxury experience, we have chosen a House of Brands organisation, to amplify the unique DNA of each of JLR’s brands - Range Rover, Defender, Discovery, and Jaguar - and accelerate the delivery of JLR’s vision to be proud creators of modern luxury.
By taking this approach, we will grow each brand’s individuality, desirability and appeal in a way that meets the unique needs of its global client base.
Range Rover, Discovery and Defender will continue to bear the trust mark of Land Rover. The Land Rover name will remain on our vehicles, reinforcing our all-terrain credentials and technology capabilities.
This year we expanded our Range Rover and Defender collections and introduced significant updates across our portfolio.
In the coming years we will launch pure-electric versions of all of our Range Rover, Defender and Discovery collections. This starts with the pure-electric Range Rover, for which we will start taking pre-orders later this year.
Meanwhile, we have announced that the first of three breathtaking new Jaguar designs will be a 4-door GT, built in Solihull with power output more than any previous Jaguar and a range up to 700 km (430 miles).
More details of the new Jaguar designs will be released later this year, before going on sale in selected markets in 2024, for client deliveries in 2025.
As we prepare for our electric-first future, we are taking steps to ensure our people have the skills vital to electrification, digital and autonomous cars. To this end, we launched our Future Skills Programme in September 2022, to train 29,000 of our workforce for our modern luxury, electric future.
We also strengthened our engineering capability to deliver electrification with the arrival, in April 2022, of Thomas Müller, who was appointed as the new Executive Director of Product Engineering.
Then, in July 2022, we appointed Barbara Bergmeier to the newly created position of Executive Director, Industrial Operations, uniting the areas of manufacturing, purchasing and supply chain.
Under Barbara’s leadership, we established a dedicated semiconductor taskforce. The taskforce has made significant progress in greatly increasing our visibility of risk, securing chip supply, and stabilising production as we’ve emerged from the Covid-19 pandemic.
Since she joined JLR in July, Barbara formed deeper relationships and partnerships with our priority chip suppliers, enabling us to ramp up production of our highest margin products, and and return to profit in the third and fourth quarters.
During the year we also entered the next phase of our Refocus transformation programme, evolving to a simplified business excellence operating model designed to drive sustainable value creation, results and growth.
Following the launch of our clear, measurable, Science Based Targets initiative (SBTi)-approved targets to enable us to achieve carbon net zero by 2039 targets to enable us to to achieve carbon net zero by 2039, we were awarded a “Low Risk” ESG Risk Rating from Sustainalytics with a score of 17.1, the fourth lowest rating out of over 75 companies in the Automotive Sub-Industry. This is a significant improvement versus our 2021 rating.
We were also very proud to achieve a maximum five-star Euro NCAP rating for our peerless new Range Rover and Range Rover Sport, underlining the incredible engineering in our MLA architecture that underpins them.
Strategic partnerships are a cornerstone of Reimagine. We are partnering with global experts in their fields such as technology leaders NVIDIA, Tata Technologies and Tata Consultancy Services (TCS). These partnerships are bringing new technologies to support the transformation and growth of our business, and the delivery of a true modern luxury experience for our clients.
For all our global activity, this year has also brought moments of great joy and poignancy for many.
JLR celebrated with joy the Platinum Jubilee of Her Majesty Queen Elizabeth II and then mourned her passing. We are sincerely honoured to enjoy a long-standing connection to the Royal Family and The Queen, which is a source of great pride for all of us at JLR.
Together we have achieved much during the past year, in the face of formidable challenges. The coming year is set to be as challenging, but as we look to important milestones in our Reimagine journey, I feel confident with the support of the committed, passionate and skilled people of JLR, we will realise them together.
FISCAL YEAR AT A GLANCE
Revenue
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Profit before tax and exceptional items
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Free cash flow
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Net debt
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Wholesales
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Looking ahead, the macroeconomic and geopolitical environments remain challenging and supply chains remain fragile. However, we expect volumes to further improve in FY2023/24 with semiconductor supply continuing to improve. We expect to be able to build on the strong business performance seen in the second half of this year supported by our great products, strong brands and commitment to the Reimagine strategy.
Richard Molyneux
ACTING CHIEF FINANCIAL OFFICER
In FY2021/22, we continued to see strong customer demand for our products with a record order bank, however, our sales were constrained by the industry-wide shortage of semiconductors.
While full year financial results reflect the restricted sales volumes, the continuing reduction in our breakeven point through revenue and cost management under our Refocus transformation programme enabled us to achieve positive margins and cash flow in the second half of the fiscal year.
In light of the rapidly developing Ukraine/Russia conflict, we have suspended vehicle sales in the region, and, while the full commercial effects are not yet known, we remain primarily concerned with the wellbeing of our people and our wider network.
Our retail sales were 376,381 and wholesales (excluding sales from our China joint venture) were 294,182 vehicles, down year-on-year 14.4 per cent and 15.4 per cent respectively as a result of semiconductor supply constraints.
Of those retail sales, 66 per cent were electrified, compared to 51 per cent in FY2020/21.
Our order bank grew through the year to reach 168,471 units as at 31 March 2022 including 45,584 orders for the New Range Rover and 40,618 for Defender.
Revenues for the year were £18.3 billion down 7 per cent year-on-year, but average revenue per unit increased compared to the prior year reflecting the prioritisation of higher margin products giving us a strong mix, particularly in the Range Rover and Defender families.
Our loss before tax and exceptional items in FY2021/22 was £412 million. Adjusted EBITDA margin1 was 10.3 per cent (2.5 percentage points lower year-on-year) and adjusted EBIT margin1 was (0.4) per cent (down 3 per cent year-on-year), driven by lower wholesales, offset by increased pricing opportunities, lower incentive spending and a favourable mix.
Refocus delivered £1.5 billion of value, of which over £300 million has been supported by our InDigital team, demonstrating our mission to develop our digital capability, to drive efficiency and ultimately underpin the value creation of Refocus.
We continued to invest in future products with a total of £2 billion spent over the past year, reinforcing our commitment to electrification as part of our Reimagine strategy. Free cash flow1 after investment spending was £(1.2) billion for the year as a whole of which £(1.3) billion was the result of working capital changes largely driven by lower production volumes year-over-year.
We continue to maintain strong liquidity with total liquidity of £6.4 billion at the end of the fiscal year comprising total cash and cash equivalents, deposits and investments of £4.4 billion and £2.0 billion undrawn revolving credit facility (£1.5 billion after July 2022). We issued around £1.4 billion of new debt in FY2021/22 including £800 million (GBP equivalent) of new bonds in the second quarter and a £625 million, five-year loan backed by a £500 million UK Export Finance guarantee in December 2021. After repaying £556 million of existing debt, we ended the year with total debt of £7.6 billion and a net debt1 position of £3.2 billion.
Looking ahead, we expect the ongoing challenges facing the automotive industry to continue. However, with the order book at record levels and new products to come, expected continuing gradual improvement in semiconductor supply and the ongoing execution of the Reimagine strategy and Refocus programme, we expect to build on the improvements in business performance we have seen in the second half of this year.
2022/23 IN FOCUS
Through our Reimagine strategy, we have set a clear vision and pathway to become the proud creators of modern luxury.
A RENEWED PURPOSE
Live the exceptional with soul is why we do business - our company Purpose, introduced during FY2022/23. It was co-created with over 1,000 voices from across our business and sets out how we will achieve our aspirations.
Our Purpose is guided by our Creators’ Code, a set of five co-created behaviours – Customer Love, Unity, Integrity, Growth and Impact.
These set out how we will behave each day to achieve our shared goals. The Creators’ Code is underpinned by progressive policies, benefits, and engagement with our people - to accelerate our collective progress.
Combined with the positive impacts of sustainability, and diversity and inclusion, our Purpose will enable us to better understand and serve our customers, fuel innovation and engage and inspire our people.
REIMAGINE
Reimagine is the roadmap for the transformation of JLR into a sustainable, electric-first modern luxury business. Through Reimagine we will deliver double-digit EBIT margins by 2026 and be net cash positive by FY2025. We will achieve our Science Based Target initiative (SBTi) carbon reduction targets in 2030 and carbon net zero goals by 2039, and always strive to exceed our clients’ expectations.
As part of our modern luxury vision, we have announced the creation of a House of Brands organisation, to amplify the unique DNA of each of JLR’s celebrated British automotive brands - Range Rover, Defender, Discovery, and Jaguar. This allows each brand to project their individual purpose, desirability, and personality. The House of Brands will also provide clarity and differentiation for our clients, to create emotional connection.
Two new product additions to the House this year were New Range Rover Sport and Defender 130, both of which beautifully embody our modern luxury design philosophy.
We are also completely reimagining the future of Jaguar, moving purposefully to deliver a dramatic, aspirational, and unique pure-electric modern luxury brand. More details of a new 4-door GT Jaguar will be released later in 2023, before going on sale in selected markets in 2024, for client deliveries in 2025.
Our business will also become carbon net zero by 2039. Guided by our Planet Regenerate, Engage for Good and Responsible Business programmes, sustainability is at the heart of everything we do.
We will deliver environmental, societal and community impact for a luxury business, creating the world’s most desirable, electrified luxury vehicles, against a canvas of true sustainability. We have committed to ambitious science-based targets, to reduce our greenhouse emissions by 46 per cent in our own operations and by 54 per cent per vehicle across our entire value chain by 2030.
Central to our Reimagine strategy and integral to our drive towards carbon net zero is the transition to an electric future for all brands – both vehicles and the supporting ecosystem, with plug-in electric hybrids acting as a key steppingstone for JLR and its clients. Our modern luxury philosophy extends to our ambition for effortless, charging experiences globally.
We are investing £15 billion over the next five years to deliver our product plans, including the rapid electrification of the product portfolio.The pure-electric Range Rover and Range Rover Sport, are on track to arrive in 2024, they will be followed by our Electrified Modular Architecture in 2025, while new Jaguar will be on sale in selected markets in 2024, for client deliveries in 2025.
By 2030, all nameplates will offer pure-electric options variants that are expected to account for 60% of our retail sales.
We are at the forefront of the rapidly changing automotive industry with a focus on electrification, digital services and data. Leadership in these areas is critical to delivering a modern luxury experience to our clients, now and in the future.
Our digital transformation will create new experiences, new levels of intimacy and connected car services for our customers. As a business, we are creating a digital-first mindset to support our growth, enhance the client experience, and increase the productivity and expertise of our teams.
Through our Open Innovation programme, we will deliver technology and digital services leadership, working with global start-ups and scale-ups, to bring new thinking and new opportunities. These are strategic collaborations that allow us to lead, not follow.
Through global partnerships announced in FY2022/23, we will deliver automated driving systems and AI-powered connected services in our vehicles from 2025 with NVIDIA; increase performance and range for our next generation of electric vehicles, using Silicon Carbide semiconductor inverter technologies developed with Wolfspeed; and accelerate the digital transformation of our industrial operations with Tata Technologies.
In FY2022/23, we have initiated an approach to strategic foresight, for our business, taking a collaborative approach with external partners, to better identify growth opportunities and improve business resilience, by understanding and evaluating disruptive risks before they happen.
REFOCUS
Our Refocus transformation programme is the engine room of long-term fulfilment of our Reimagine strategy. It is how we are driving change across our business to improve our operations and allow us to achieve our strategic goal of reimagining our automotive future.
Refocus has already created significant results, for our business and culture, and delivered over £2.6 billion of value since the beginning of FY2021/22. Through our Charge and Accelerate cost saving and transformation journey to date, it’s created the right foundation of cost control, waste elimination and cross functional collaboration to help us focus on sustainable value creation and business excellence to deliver true sustainable growth. This new era and approach we have called Refocus 2.0 so an evolution vs revolution.
With more than 100 Refocus initiatives driving change in the last year, the programme has delivered against key objectives one year earlier than planned.
Driving profitability
In Quality, we have improved the quality that our customers’ experience during their vehicle ownership. We are measuring customer satisfaction through net promoter score (NPS): in China, Land Rover ranked second in the Customer Service Index (CSI) survey and second in the Vehicle Dependability Survey (VDS). Similarly, in the USA, our JD Power ranking in the Initial Quality Survey (IQS), which measures customer perception of vehicle quality after three months of ownership, improved by two points compared to overall industry drop of eighteen points.
In Programme Delivery and Performance, we are addressing underlying business constraints that impact on Agile squads’ ability to deliver value. Our focus has been on simplifying governance, decision-making processes, as well as increasing the speed with which impediments are resolved to streamline our products’ time to market.
In Delivered Cost per Car, we have continued building on successful cost reduction initiatives across key vehicle programmes. Through technical and feature optimisation, we have driven material cost reduction changes without disrupting programme delivery. The delivery of cost initiatives approved in FY2022/23 will continue in FY2023/24 to mitigate a reduction in returns on legacy carlines.
In Supply Chain, we have continued to deliver end-to-end efficiencies and increased operating stability. Throughout FY2022/23, we significantly improved our semiconductor supply, with intensive efforts on risk identification and mitigation. Throughout next year, our focus will be on improving operating transparency, stability, and resilience through new technologies with our external partners.
In Customer and Market Performance, we are transforming our go-to-market models and the way we interact with our discerning clients. We have launched our first direct agency sales model in South Africa and created a seamless on and offline Modern Luxury Client Journey with our Retail Partners in Europe, all underpinned from our digital transformation with a new integrated platform enabling our clients to complete their new vehicle reservation journey online.
The new go-to-market models are all about client experience and leveraging our retail footprint of over 75 years. We are exploring new Modern Luxury physical retail designs, ensuring each of our brands unique DNA comes alive which is client centred, and simplifying every client touch point too. We have a new format in Mayfair-London Boutique, whilst in China, we have opened retail outlets in 5 cities including Beijing and Shanghai with this design language, truly showcasing immersive and joyful experiences.
These principles also extended to ‘Range Rover House’ which is a fully curated experience, inspiring homes, iconic locations and exclusively for clients, targeting our audience, this was delivered in Pebble Beach and other locations globally creating growth through desirability.
In Responsible Spend, we continued to drive collaboration across the business. By simplifying end-to-end processes and removing non-value add bureaucracy, £100m savings have been achieved throughout the period. New technology and digital ways of working are delivering improved cost control, and will continue to be our focus in the future.
Changing our way of working
In Digital, we merged our Digital and IT teams to form a single ‘Digital’ function, capitalising on the best practices, bringing together a fully integrated team of over 800 people. Working with our strategic partners, smart tools and technologies developed by the Digital team have underpinned critical operations in FY2022/23. Notable examples include a suite of tools to support the launch of our vehicles built on the modular longitudinal architecture (MLA), as well as enabling data-driven decision-making. Our focus remains on modernising our digital infrastructure, as well as staying safe from cyber-attacks.
In Agile Organisation and Culture, our priority has been on unfolding our Purpose and Creators’ Code across the organisation. We launched our “Reimagine Leadership” programme which offered numerous learning interventions such as practical empowerment and team engagement to support our cultural transformation.
To enable delivery of our products on time, to cost and quality, we also transitioned six programme delivery portfolios into agile ways of working whereby 8,000 people are working in empowered squads and have adopted core Agile procedures.
Commitment to carbon net zero
In Sustainability, in FY2022/23, we successfully reduced our emissions from our Manufacturing and Operations (scope 1 and 2) by 13.2 kTCO2e, through delivery of specific projects, helping to meet our Science Based Targets initative (SBTi) glidepath targets. We also progressed in our strategy execution plan for our transition to supply chain decarbonisation and electrification which support attainment of our scope 3 target in future years, as described in our strategy approach.
In addition to our decarbonisation roadmap, we have strengthened our overall sustainability position. This has been achieved through adopting strategic partnerships, enriching our circular economy capabilities and responsible business practices, and is reflected in external indices and reporting standards.
For further details, please refer to the dedicated sustainability section.
Our Refocus transformation is now evolving to its next level. This next phase will accelerate the energy and power of our organisation and people to deliver our Reimagine strategy.
TIME
Refocus 2.0 is an enterprise-wide approach that will simplify our operating framework and governance, with greater focus on systematic value creation and business excellence to help grow our business. Our new Refocus “Value Creation System” will govern everything we do as a business under the three value streams: how we “Attract & Retain our Customers” to our brands, how we maximise the return on the investments we make in the “Creation of Products & Services”, and how we “Plan, Buy & Make” the Industrial Operations part of our business to build our products.
These value creation streams connect our business capabilities, providing end-to-end visibility on how we deliver value.
Using a single set of aligned Business Outcomes, measured through our simplified ‘Key Performance Indicators’ as part of our Enterprise Operating Framework, we are connecting everyone in our business to a common purpose and set of priorities. By simplifying our management cadence and how we measure enterprise performance, we drive truly aligned impact for a sustainable future. Working together in functional “Enterprise Chapters” against each outcome, our teams will unite their skills and capabilities to deliver both sustained continuous improvement and business excellence.’
Under our Reimagine strategy, we have continued to bring new products and technologies to our clients, invested in our people and facilities, and announced new strategic partnerships significant for our electric future.
CONTINUING OUR MODERN LUXURY JOURNEY
The New Range Rover Sport – Sporting luxury with attitude
Following the success of New Range Rover, in May 2022 we introduced the New Range Rover Sport - our most dynamic Range Rover Sport ever, bringing a visceral performance edge to the brand and applying our modern luxury philosophy to a new vehicle, for our clients.
Range Rover Sport, which was the first established Range Rover as a brand beyond a single vehicle in 2005, has grown to become one of our most successful vehicles, spanning 17 years and two generations. With plug-in electric hybrid power and a host of dynamics technologies, the latest Range Rover Sport brings dramatic design, connected convenience and electrified performance to a new level, setting a new standard for performance SUVs.
Innovations and technologies that ensure New Range Rover and New Range Rover Sport lead by example are protected by more than 200 new patents filed up to the end of FY2022/23.
Some of these innovations were recognised by Euro NCAP this year, in awarding New Range Rover and Range Rover Sport maximum five-star safety scores, including ratings of over 80 per cent for Occupant Protection and in the Safety Assist category, recognising their suite of Advanced Driver Assistance Systems.
Expanding our Defender Collection
The financial year 2022/23 also saw us add to our Defender collection, with the introduction of the Defender 130 model.
Echoing the name of the original long-wheelbase model, the Defender 130 adds another dimension to our all-conquering, all-terrain brand, providing space and comfort for up to eight adults, across three rows of full-size seating.
To create the enhanced interior space, without compromising its unparalleled all-terrain capabilities, Defender’s silhouette has been sensitively extended by 340mm rearwards, while the wheelbase remains unchanged. Elsewhere, it features all the Defender refinements and technologies that our clients expect.
Software over the air
This year, we delivered our five millionth individual software-over-the-air (SOTA) update to 500,000 Range Rover, Defender, Discovery and Jaguar.
Our latest vehicles are highly digitised and seamlessly synchronise multiple systems for the driver, to make the driving experience uncomplicated and relaxing.
New models, such as the New Range Rover, New Range Rover Sport and Defender, feature more updateable Electronic Control Units per car than any other production model on sale. This gives unprecedented scope to enhance the vehicle remotely, without costing clients the time of a retailer visit.
Originally developed to update infotainment systems, SOTA now updates a wide variety of vehicle systems, from engine, braking and steering systems, transmission control for four-wheel-drive and advanced driver-assistance systems (ADAS), such as Adaptive Cruise Control.
Celebrating milestones
5 years after the original was introduced at the 1948 Amsterdam Motor Show, this landmark anniversary was celebrated with a new limited-edition Defender model and a new LEGO® Icons Classic Land Rover Defender 90 set.
The exclusive Grasmere Green exterior colour and unique detailing was reflected in a Lifestyle Collection of complementary goods made available to clients. As for the 32cm-long LEGO® model, the 2,336-piece set is complete with all the accessories for an off-road expedition, allowing builders to create an everyday road-ready model.
Having won more than 50 global awards, Defender is now on sale in almost 100 countries around the world and continues to grow in popularity. Through FY2022/23, we recovered production volumes and ramped up to three shift production at our Nitra plant, in Slovakia, supporting the business to deliver more than 86,000 Defender wholesales.
Jaguar sports cars also celebrates its 75th anniversary in 2023 with a unique special edition of the F-TYPE that also acknowledged the sports car’s last model year, before Jaguar’s renaissance as a pure-electric modern luxury brand.
A pair of exclusively curated special editions were developed to mark the occasion, available in both coupé and convertible body styles, featuring unique interior and exterior design elements, rich specifications and the unique paint options such as Giola Green metallic.
Continuous Innovation
At the centre of our Reimagine strategy is the development of uniquecustomer experiences. New Range Rover Velar, Jaguar F-PACE and the award-winning Jaguar I-PACE have become more distinctive, compelling and desirable than ever.
With New Range Rover Velar, we are providing a calm sanctuary to our clients, promoting comfort and wellbeing. The cabin includes active technologies that help to cleanse the air and minimise road noise, to be both cleaner and quieter, on any journey.
With an upgraded battery pack on the F-PACE P400e plug-in electric hybrid, we offer an increase of 20% to our clients on their electric-only range.
Jaguar I-PACE continues to reinforce its status as the benchmark all-electric performance SUV thanks to an impressive real-world range and day-to-day usability.
OUR NEW ERA OF ELECTRIFICATION
Modern luxury of electric propulsion
Through FY2022/23, we continued to transform our business at pace, both in electrifying our current vehicles, and in planning our electric future. The New Range Rover Sport provides a pure-electric capability for almost every journey.
As one of the fastest-charging plug-in hybrid systems, re-charging up to 80 per cent takes under an hour.
Every one of our brands – Range Rover, Discovery, Defender, and Jaguar – now offers plug-in and mild hybrid vehicles, together with the all-electric Jaguar I-PACE with 68% of sales being electrified vehicles in FY2022/23.
The reimagining of Jaguar into a pure-electric modern luxury brand is on track. More details of a new 4-door GT Jaguar to be released later in 2023, before going on sale in selected markets in 2024, for client deliveries in 2025.
We are developing a unique architecture, named JEA, to be manufactured in-house at our Solihull manufacturing facility. The new design language for Jaguars of the future has been clearly defined - they are highly anticipated and will be a copy of nothing.
This year, we also re-confirmed our next generation electrification roadmap. Our electrified modular architecture (EMA) will be electric only whilst the flexible modular longitudinal architecture (MLA) will offer flexibility between ICE, hybrid and pure-electric.
The first all-electric Range Rover will launch in 2024, and over the following years, all our collections will have their pure-electric options.
Making charge attractive
To help ease our clients’ transition to electric vehicle ownership, we are actively developing both home charging and public charging.
For our clients’ home, we are developing modern luxury home charging solutions. In the UK, in 2022, we partnered with Andersen EV, a London-based manufacturer and supplier of customisable, high-end vehicle home charge points.
In October 2022, we announced a new service, Jaguar and Land Rover Charging powered by Plugsurfing, to simplify the process with one charging key and one app giving access to a curated network of over 300,000 charging points across 27 European countries and 700 charging point providers.
We are also working with other companies - such as Tesla - to make sure that we have full compatibility with other structures. With the opening of Tesla Superchargers to non-Tesla vehicles, we have been able to offer our clients in the Netherlands the possibility to use that network.
A sustainable circular economy
In March 2022, we announced a partnership with Pramac, a global leader in the energy sector, to develop a portable, zero-emission energy storage unit powered by second-life electric vehicle batteries.
Their Off Grid Battery Energy Storage System (ESS) features lithium-ion cells from Jaguar I-PACE batteries, supplying zero-emission power where access to the main supply is limited or unavailable.
It was showcased through the year by the Jaguar TCS Racing Formula E team, powering their on-grid utilities on race days.
Second-life applications for our vehicle batteries, such as this, will support our transition towards a circular economy business model over time.
Embracing a new era of Formula E
Jaguar TCS Racing’s Mitch Evans finished second in Season 8 of the ABB FIA Formula E Drivers’ Championship, recording four wins and seven podium positions in Jaguar’s sixth season of competition.
The 2023 ABB FIA Formula E championship marks a significant moment of revolution for Formula E, its Gen3 era. Lighter, more powerful and faster, the new Jaguar I-TYPE 6 is the most advanced and efficient electric Jaguar race car ever designed and engineered.
Formula E remains a key priority for Jaguar, allowing our engineers to collaborate on new electric vehicle technologies in a high-performance environment. Pioneering new cutting-edge technologies, the resulting knowledge, learning and technological development is directly shaping future pure-electric Jaguar road car technology.
Racing in a zero-emission motorsport category also demonstrates our commitment to have zero tailpipe emissions and to achieve carbon net zero across our supply chain, products and operations by 2039.
Partnerships to improve the breed
One key partnership nurtured by Jaguar in Formula E has been with Wolfspeed, with whom the Jaguar TCS Racing team has developed Silicon Carbide semiconductor technology since 2017.
These compound semiconductors can operate at much higher temperatures, provide higher current density, and provide faster switching with reduced heat loss, all critical in electric drivetrain efficiency.
This year, we extended this technology partnership to our whole business, through a global strategic agreement with Wolfspeed, to secure supply for the same cutting-edge Silicon Carbide semiconductors.
This technology will provide our next generation of modern luxury electric vehicles with significantly increased powertrain efficiency and extended driving range, while reducing weight and conserving space.
INVESTING IN TECHNOLOGY LEADERSHIP
Seamlessly integrated technologiesFrom segment-first digital LED lighting technology to the seamless integration of connectivity powered by Amazon Alexa voice AI, and advanced noise cancelling and cabin air purification systems, our on-board vehicle technologies already deliver true modern luxury and calm sanctuary for our clients.
This year, we added further convenience through over-the-air software updates, including an integration of the ‘what3words’ platform for clients with Pivi Pro in 150 countries and 24 languages.
‘what3words’ has given every 3m x 3m square in the world a unique identifier, enabling fast and accurate routing to a destination, even without an address.
Our testing capability in connected technologies was further strengthened this year by our investment in a brand-new Electromagnetic Compatibility (EMC) laboratory, at our Gaydon, UK engineering hub.
The New Range Rover Sport was the first vehicle to undergo a bespoke testing programme at this facility, critical to ensuring future quality, legal, and customer satisfaction.
Growing our ecosystem
Throughout FY2022/23, we have seen several initiatives, projects and partnerships emerging with our sister companies including Tata Technologies, and Tata Consultancy Services (TCS).
The collaboration with Tata Technologies will enable us to accelerate the digital transformation of our industrial operations. The award-winning cloud-based Enterprise Resource Planning software solutions will revolutionise operations for employees and suppliers, delivering advanced interfaces, increased efficiency, and enhanced collaboration.
In parallel, over 100 colleagues from JLR and TCS collectively identified more than 30 opportunities across four key domains - Digital, Engineering, Sustainability and Customer journeys – which are aligned with the overall ambition of delivering Reimagine and will transform our brands, vehicles and services.
Recruiting and upskilling for a digital future
This financial year also saw us taking key actions to recruit and re-train our people for our digital future.
In September 2022, we announced our Future Skills Programme, a global upskilling drive to train 29,000 people over the next three years, in connected and data capabilities, and to support our rapid transformation.
More than 10,000 JLR and franchised retailer employees in the UK, and nearly 19,000 across the rest of the world, will be trained in skills vital to electrification, digital and autonomous cars.
Shortly after this announcement and following large-scale job losses from technology firms, we announced a further drive to recruit skilled workers from the digital technology industry by opening a new jobs portal to explore career opportunities and offering hybrid working patterns. More than 800 new digital and engineering positions were offered globally, across Autonomous Driving, Artificial Intelligence, Electrification, Cloud Software, Data Science, and Machine Learning.
We also created three global tech hubs which will be focusing on autonomous technologies, in Germany, Italy and Spain. They come in addition to the existing JLR tech hubs in the USA, Hungary, Ireland, UK, China and India. The new recruits will bolster the 1,100 engineers who are working on subjects including driver assistance systems and artificial intelligence for self-driving cars.
During the last quarter of FY2022/23, we offered a record number of degree apprenticeships, to deepen our talent pool and develop the next generation of modern luxury vehicles.
Open Innovation for the future
In April 2022, we announced Open Innovation, a strategy created to accelerate next-generation technology and sustainability implementation through collaborations with start-ups, scale-ups and like-minded organisations.
Key to the strategy are partnerships with corporate innovation platforms and investors. We co-founded a first-of-its-kind innovation hub in the UK, in partnership with Plug and Play, while two separate partnerships with Cubo Itau and Firjan have established a connection with the vibrant Latin American start-up ecosystem.
Areas of focus for Open Innovation include sustainability, talent, intelligent multi-enterprise, connectivity, electrification, digital services and the metaverse.
Launched in June, Plug and Play’s Mobility Innovation programme is designed to bring innovation and sustainability improvements to the mobility sector through new technology, processes and tools. Partners include: the University of Warwick, Advanced Propulsion Centre, Zenzic, Novelis and Bentley.
INTRODUCTION TO SUSTAINABILITY
Sustainability is at the heart of our Purpose, enabled through our Reimagine strategy and our Creators’ Code.
We are going through a transformation to enable us to deliver sustainability-rich, modern luxury vehicles.
This will deliver value to our clients and our shareholders, growth and value creation for our business, and will help create positive impact for the planet and for its people.
Sustainability is integral to how we operate as a business and to our long-term success. Our strategy is guided by the Tata Group’s Project Aalingana which sets a clear framework for driving momentum on sustainability. Our sustainability strategy is underpinned by our Environmental and Social Policy which includes a core set of principles as well as commitments we have made around society, environment, clients, products and suppliers.
Sustainability is a collective effort from our employees and stakeholders across our value chain, enabled by our Creators’ Code.
Our sustainability strategy encompasses three focus areas: Planet Regenerate, Engage for Good, and Responsible Business.
PLANET REGENERATE
Transforming our business across the full value chain
Carbon net zero by 2039
Circular Economy
Biodiversity
ENGAGE FOR GOOD
Acting as a global citizen for sustainable development in the communities and environments in which we operate
Reduce inequalities
Education, livelihoods and skills
Supporting the vulnerable
Climate change, circularity and biodiversity
RESPONSIBLE BUSINESS
Doing business responsibly and with integrity
Proactive ESG risk management
Transport reporting
Clear standards and policies