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JLR doubles down on hybrids, US expansion

Land Rover highlights 'increased propulsion flexibility' as it plots greater US presence

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Jaguar, we’ve been assured for years now, will be uniquely electric in the future. But the Land Rover bit of JLR (i.e. the entire money-making enterprise) will be far slower to transition to an exclusively battery-powered future. Indeed, while its latest missive about setting out a path to ‘double digit revenue growth’ reminds us that some heavyweight EV options are inbound - the Range Rover Electric and Range Rover Sport Electric primary among them - it also gently applies the brakes to the idea of the lineup becoming exclusively about electrification. 

This reasoning is not hard to fathom: making money from an entirely electric luxury portfolio in the short to medium term appears to be a non-starter - especially if your growth agenda centres on North America. To that end, the model singled out as flag carrier for the firm’s future ambitions is not the full-sized Range Rover (perennially popular in big cities) but the Defender, which is imminently due to sprout a downsized variant built on the new EMA platform. 

Previously, as the name Electrified Modular Architecture suggested, this was destined to be an EV-only affair; now, not so much. JLR today confirmed that ‘greater propulsion flexibility’ would result in a full hybrid option for all the models built on EMA at Halewood. In other words, space will be made in the platform and production line for the reintroduction of customer-pleasing petrol engines. 

In comments to the FT, JLR’s new boss doubled down on the American market pivot, by suggesting the firm would “give everything” to turbocharge its sales to “millionaires and billionaires” as it seeks double-digit annual revenue growth within five years. “Petrol is huge in the US,” noted PB Balaji, effectively ruling out the idea that the combustion engine is on a timer in production terms. 

Moreover, he did not rule out the idea of localised manufacturing in a market that favours domestic factories. It is to this end that JLR signed a non-binding MOU with Stellantis last month, the partnership specifically targeting ‘synergies for product development in the US’. Today, Land Rover went so far as to reference new products ‘specifically designed for the US market’. 

PB Balaji explained: “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.” An ambitious target, certainly, one arguably made all the trickier by Jaguar’s hamstrung status as an EV-only brand. Whether that policy remains intact in 18 months time will likely prove a bellwether of JLR’s broader-minded strategy. 

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• First official look at new Range Rover Electric
• 2026 Range Rover Electric | First drive

[Wadeski]

Finally some sense. Sell profitable gasoline powered cars to the profitable American market.

Not unprofitable EVs to unprofitable markets regulating themselves out of relevance.

[bobthemonkey]

So US market only Defender badged products built by Stellantis on Jeep platforms?

[ashenfie]

Under a Memorandum of Understanding, Stellantis is exploring using its underutilized North American factories to assemble Land Rover vehicles, specifically for the US market.
I guess that is how they plan to sell less cars and make more profit.

[modeller]

Well that's China ruled out then. Bet the company on the US and its fickle politics. What could go wrong?

[ChrisCh86]

It's a good idea, especially if they can build them in the USA to avoid import tariffs. The Defender is already built in Slovakia, so why not build it in Wyoming too?

Salaries are a lot higher in the USA (I could be paid double what I earn in the UK as an engineer), plus there's a bigger market due to the higher population.

Time to sell lots of highly specified V8 Defenders and Range Rovers for $$$

Edited by ChrisCh86 on Wednesday 17th June 15:42