Annual Report 2024
Key milestones driving our transformation this year were the launch of the most powerful and dynamic Range Rover Sport ever, the new Range Rover Sport SV and opening the order books for our first all-electric Range Rover.
NATARAJAN CHANDRASEKARAN
CHAIRMAN
This year saw a continuation of a challenging global economic environment and escalating geopolitical tensions. Against this backdrop, JLR delivered a resilient performance to achieve robust financial results and strong operational progress in FY24.
Our supply situation improved significantly after a few challenging years and helped us deliver 401,303 wholesales during the year. Our revenue grew 27% to £29 billion and delivered an adjusted EBIT margin1 of 8.5%, delivering a profit after tax of £2.6 billion.
Key milestones driving our transformation this year were the launch of the most powerful and dynamic Range Rover Sport ever, the new Range Rover Sport SV and opening the order books for our first all-electric Range Rover.
We announced strong plans to invest £15 billion over the next five years to transform our existing manufacturing facilities supporting the development of electric, autonomous, AI and digital technologies.
Plans to see all brands electrified by 2030, as well as a radically reimagined, all-electric Jaguar brand from 2025, were further cemented this year with the confirmation from Agratas of its plans for a £4 billion gigafactory in Somerset, UK, for which JLR will be an anchor customer.
JLR ends this financial year in a strong position, with a portfolio of desirable products, a healthy bank of future orders, and a renewed commitment to its strategy, to reimagine its renowned British luxury and creativity for global clients.
Looking ahead, while we must be prepared for more disruption and volatility in the world, I remain excited for the future of all our automotive brands, and encouraged by the adaptability, resilience, and dedication of all our colleagues and partners, to achieve more, not only for our business and clients, but our communities; to set new standards in technology, manufacturing and sustainability.
I would like to thank our teams for their tireless efforts and our partners for their continued support as we work to realise the full potential of JLR in the coming years.
We have emerged stronger from the recent crises and are delivering our strategy at pace, with new leadership, more robust supply chains, increasing production, and improving financial performance. I am confident that with the desirability of our products, the skill and dedication of our people and the exciting portfolio of electric models on the business will continue to vigorously address the challenges encountered in 2024, and successfully reimagine our bright future in the year ahead and beyond.
ADRIAN MARDELL
CHIEF EXECUTIVE OFFICER
Looking back, the last year was a crucially important stake in the ground as we firmly re-established our financial stability and laid the foundations for the next chapter of our Reimagine strategy.
We knew we had to build on the hard-won momentum that our return to profit in the second half of FY23 brought, and we did just that by delivering a strong first half of FY24.
In fact, we broke a series of records for the company starting with the highest ever quarter one free cash flow, then the highest ever first half of a financial year free cash flow, and then in quarter three we saw our highest profit ever and record Range Rover brand wholesales.
Quarter four was another record-breaking period, as we broke revenue records for the quarter and full year, and delivered record sales for Range Rover and Defender.
This was truly an incredible achievement, not least because for the last three years our business had been constrained by the extraordinary global pressures of semiconductor shortages, inflation, an energy crisis and other geopolitical instability, all of which took significant amounts of time and resource to resolve.
As operational performance improved, we were able to make progress towards our Reimagine financial goals. By increasing free cashflow, we reduced our debt and made huge strides towards the target of reaching net debt zero by the end of FY25. In addition, such was our confidence in our quarter two performance, we revised upwards our profitability expectations for the full year from six per cent to eight per cent.
That we came through the challenging period, stabilised the business, and then went on to deliver a strong set of results throughout the rest of the year is testament to the skill, passion and dedication of our brilliant people. Thanks to our exceptional colleagues, JLR is now taking off.
Beyond the financial results, in April, 2023, we announced that we would be investing £15 billion over the next five years to transform our business and electrify our brands by 2030, launching an all-electric Range Rover and reimagining Jaguar as an all-electric luxury brand.
We began reconfiguring our production facilities for electrification, including making Halewood in Merseyside our first ever all-electric production facility, and upskilling our diverse workforces. Then, following the announcement in April of our new House of Brands organisation, we revealed the new JLR corporate identity. The House of Brands approach aspires to remove ambiguity and bring to the fore the unique DNA of each of JLR’s brands - Range Rover, Defender, Discovery and Jaguar – as well as accelerate the delivery of the company’s vision to be proud creators of modern luxury.
During the year, we refreshed our existing collections with model year updates, including the arrival of the most powerful and dynamic Range Rover Sport ever, the superlative Range Rover Sport SV Edition One. Invite-only orders for this vehicle were fully reserved ahead of its launch in May, demonstrating its enormous desirability.
Our vehicles extended their track record of award-winning acclaim. Range Rover Sport was named the Auto Express “Large Premium SUV Of The Year 2023” while Jaguar and Land Rover (Range Rover, Defender, Discovery) brands placed top of J.D. Power US “Automotive Performance, Execution and Layout (APEAL)” study based on client perceptions of design, performance, safety, comfort and quality.
In July came the much-anticipated announcement that Tata Sons had chosen the UK as the location to build a new gigafactory, run by Agratas and JLR would be its anchor customer. This was a huge moment for us, guaranteeing a secure battery cell supply for our next-generation electric vehicles, near to our manufacturing base. It was also a significant moment for the UK car industry which requires a supply of domestically-produced batteries to remain competitive in a future EV dominated world.
Against a broader backdrop of electrification, our much loved and admired Jaguar F-TYPE V8 sportscar was celebrated in its final 24MY guise, with two new 75 edition models, heralding 75 years of Jaguar sports cars. And while the evocative roar of the F-TYPE’s supercharged V8 engine will eventually be gone, it will not be forgotten as we took the step of archiving the engine sound in the British Library for future generations to hear, in an age where all cars will be electric.
Coventry is of course the birthplace of Jaguar, and it is also home to our powertrain engineering centre in Whitley, which for many years has developed internal combustion powertrains. This was the year that we signalled Whitley’s electric future as we unveiled its all-new Future Energy Lab, a £250 million electric propulsion test and development facility, where our passionate engineers are designing and testing the Electric Drive Units (EDUs) for our next-generation electric vehicles.
As well as Jaguar, this year we celebrated two more anniversaries as we were joined by Her Royal Highness the Princess Royal to commemorate the 60th anniversary of vehicle manufacturing at our historic Halewood facility in Merseyside, UK. We also toasted the fifth anniversary of our state-of-the-art production facility in Nitra, Slovakia, home to Defender and Discovery, and confirmed its future producing electric vehicles.
Through FY23/24, we have taken further steps to strengthen our supply chain and expand its resilience in an increasingly volatile world.
We introduced a risk scanning solution to identify risk throughout the whole supply chain at the earliest opportunity; we announced a partnership with Tata Technologies to deliver Enterprise Resource Planning (ERP) that will transform JLR’s manufacturing, logistics, supply chain, finance and purchasing by bringing data from multiple departments into one source; and we are working with NVIDIA at our Innovation Hub in NAIC, Warwick, to develop a digital twin of our supply chain allowing us to make changes in a risk free environment.
People are the heart and soul of JLR and as we deliver on our Reimagine strategy, it is vital our colleagues are equipped with the skills necessary to keep pace with the technological change. This year, as part of our Future Skills Programme, we delivered the largest data upskilling apprenticeship programme in the UK, to make better decisions, innovate faster, and deliver for our clients. We also trained a further 2,000 engineers in electrification.
Skills are only a part of the development and enrichment of our people. We are committed to realising a culture representative of society by instilling values of unity and belonging, inclusion and respect at JLR. This year, we hosted our first ever Diversity, Equity and Inclusion (DE&I) Summit, welcoming participants in person, and online in 26 countries with 17 global inclusion hubs to celebrate the uniqueness of each soul at JLR. We celebrated events such as Black History Month, Diwali, and PRIDE, and my leadership team have now received modern leadership training. Having had the privilege of being reverse-mentored by members of our DE&I employee-led networks, I know that our work to become a more diverse business is supporting our strong performance.
I am also delighted to have appointed Richard Molyneux to my executive team as our permanent CFO, following a brief period where he served as interim CFO. Richard has already shown himself to be a great talent in his new role and is a perfect fit to the JLR Limited board. Meanwhile I am honoured to have formally been appointed to the role of CEO. I have held a range of roles in this business and fully appreciate our industrial and innovation role in the UK and beyond, our role as proud employers of global talent, and our role in curating our iconic brands.
We have emerged stronger from the recent crises and are delivering our strategy at pace, with new leadership, more robust supply chains, increasing production, and improving financial performance. I am confident that with the desirability of our products, the skill and dedication of our people and the exciting portfolio of electric models on the business will continue to vigorously address the challenges encountered in 2024, and successfully reimagine our bright future in the year ahead and beyond.
FISCAL YEAR AT A GLANCE
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The financial year ending 31 March 2024 saw many of the challenges we faced in previous years ease. Improved production and sustained global demand for our products led to us achieving our highest ever annual revenue and highest profit since FY14/15. Our record free cash flow of £2.3 billion allowed us to reduce our debt by repaying maturing debt and the completion of a $400 million tender for three of our bonds.
Richard Molyneux
CHIEF FINANCIAL OFFICER
The financial year ending 31 March 2024 saw many of the challenges we faced in previous years ease. Improved production and sustained global demand for our products led to us achieving our highest ever annual revenue and highest profit since FY14/15. Our record free cash flow of £2.3 billion allowed us to reduce our debt by repaying maturing debt and the completion of a $400 million tender for three of our bonds.
Our liquidity position for the year has remained strong with our net debt position as at 31 March 2024 being £0.7 billion. Our consistent performance during the year was recognised by S&P and Moody’s with a two-notch credit upgrade to BB and a one-notch upgrade to Ba3 respectively; both with positive outlook.
Wholesale volumes for the full year (excluding sales from our China joint venture) were 401,303, up 24.9 per cent compared to the prior year, with sales in all regions up year-on-year. In the fourth quarter, we delivered the highest wholesale volume for 12 quarters.
Retail sales (including sales from our China joint venture) were 431,733, up 77,070 units (21.7 per cent) compared to the previous year. The increased retail sales reflected that we were quicker at fulfilling orders, thereby reducing the waiting times to receive new vehicles. Of the retail sales referenced above, 75 per cent were electrified (which includes BEV, PHEV and MHEV offerings), compared to 67 per cent in FY22/23.
Revenues for the year were £29.0 billion, up 27.1 per cent year-on-year, reflecting higher wholesales and a favourable product mix. Production levels of Range Rover and Range Rover Sport have significantly increased over the year with the addition of a second MLA body shop at Solihull. We have also continued the three-shift production at our Nitra factory, which produces the Defender.
Profit margins improved with an adjusted EBITDA margin1 of 15.9 per cent (4.3 percentage points higher year-on-year) and adjusted EBIT margin1 of 8.5 per cent (up 6.1 percentage points year-on-year), driven by higher wholesales, favourable sales mix and improved pricing. Profit before tax and exceptional items in FY23/24 was £2.2 billion, compared to a loss before tax and exceptional items of £(64) million in the prior financial year. Profit after tax was £2.6 billion, up from a loss of £(60)million a year ago. We recognised a deferred tax asset (DTA) of £1.0 billion, due to improved performance leading to a reassessment of the future recoverability of DTA relating to tax losses/allowances accumulated in previous periods.
Our commitment to our Reimagine strategy and specifically to electrification was reflected in the £3.3 billion of investment spend during the year. Free cash flow after investment spending was £2.3 billion for the full year, including a working capital benefit of £648 million.
During the year, we repaid £1.8 billion equivalent of debt, reducing total gross debt to £(4.9) billion as at 31 March 2024. We ended the year with a global cash balance of £4.2 billion reflecting total cash and cash equivalents, deposits and investments. Our available liquidity, including the £1.5 billion undrawn revolving credit facility (“RCF”), was £5.7 billion at 31 March 2024.
We are on an exciting journey as part of our Reimagine strategy and look forward to delivering even more modern luxury vehicles and experiences to our clients.
2023/24 IN FOCUS
Our unique company purpose, Live the Exceptional with Soul, was co-created by over 1,000 voices from across our business and provides a unifying vision for our organisation.
By bringing together our people under a shared purpose, collectively we drive forward our business and create an environment where everyone can thrive as individuals.
Our Purpose also sets out how we will achieve our aspirations and is the enabler to our culture of creating the exceptional, while mindful of the impact we have on our people, the planet and communities.
It is guided by our Creators’ Code, a set of five behaviours - Customer Love, Unity, Integrity, Growth and Impact - underpinned by progressive policies, benefits, and engagement with our people.
Our Creators’ Code embodies our promise to make JLR a kind, respectful organisation, holding at its core an inclusiveness that honours the differences that drive our creativity, and a determination to keep evolving into the culture we want to become.
It gives every creator a voice in an inclusive environment where people feel they can bring their true, whole selves to work, to deliver on our vision - to be the proud creators of modern luxury.
It is by aligning our strategy, policies, processes and experiences through our Purpose and Creators’ Code that we will achieve our vision, better fulfil our clients’ needs, fuel innovation and creativity, and inspire our people.
REIMAGINE
Reimagine is our roadmap, our strategy, for transforming JLR into a sustainable, modern luxury business.
With sustainability at the heart of everything we do, we aim to achieve our goal of being carbon net zero by 2039, with delivery of our 2030 Science Based Targets initiative (SBTi) carbon reduction targets as a significant milestone. Through Reimagine, we aim to deliver double-digit EBIT margins by 2026 and be net cash positive by FY25.
As part of our strategy, we have created a house of four distinct brands: Range Rover, Defender, Discovery, and Jaguar; each with its own DNA and unique interpretation of modern luxury, and our modernist design philosophy.
Under this structure, we elevate the unique characteristics and status of each individual British marque, creating an emotional connection with our clients, from leading by example with Range Rover, to embracing the impossible with Defender, and enjoying family adventures with Discovery.
We are also radically reimagining our Jaguar brand, with an exuberant, modernist and forward-thinking character that promises to be a copy of nothing when it is revealed.
We opened the waiting list for our first pure-electric car conceived under the Reimagine strategy - Range Rover Electric - and introduced a new performance champion in the Range Rover Sport SV Edition One, as well as refreshing our Range Rover Velar, Evoque, Defender and Discovery Sport.
The electric future of all our brands is fundamental in our journey to carbon net zero, but it must be delivered at the pace at which different markets electrify around the world. The Modular Longitudinal Architecture (MLA) that underpins Range Rover Electric also enables Internal Combustion Engine (ICE), mild, and plug-in hybrid powertrains, providing flexibility for our clients, by market, and the rapid electrification of our product portfolio.
Elsewhere, our new Electrified Modular Architecture (EMA) and Jaguar Electrified Architecture (JEA) will be introduced from 2025, as we move to an electric business, with all our brands offering pure-electric options by 2030.
Reimagine is also about transforming our facilities to deliver this all-electric future. We are reconfiguring Solihull to produce pure-electric MLA models and later, electric Jaguars; and by converting Halewood in Merseyside UK, to be our first all-electric manufacturing facility. In Wolverhampton, our Electric Propulsion Manufacturing Centre will be producing electric drive units (EDUs) and battery packs for all our brands, and our plant in Nitra, Slovakia will be updated to produce electric vehicles by 2030. Our new £250 million Future Energy Lab in Coventry, UK will enable greater development ownership and oversight of critical components in our electric vehicle supply chain.
Beyond our vehicles, Reimagine will generate new benchmarks in environmental, societal and community impact for a luxury business. We have committed to ambitious Science Based Targets, aimed at reducing our greenhouse emissions by 2030 compared to our FY19/20 baseline, and are working collaboratively with industry-leading partners and suppliers, to help reduce emissions by 46 per cent in our own operations and by 54 per cent per vehicle across our entire value chain.
To do this, our sustainability strategy is divided into three areas, Planet Regenerate, Engage for Good and Responsible Business:
Planet Regenerate is focused on environmental impacts and includes our climate commitments, circular economy strategy and emerging plans on nature and biodiversity. We aim to achieve net zero carbon emissions across our supply chain, products, and operations by 2039 with all brands offering pure-electric options by 2030.
Engage for Good builds on Tata Group’s 150-year legacy of social responsibility and giving back to the community, through which more than 17.8 million lives have been positively impacted through community initiatives in FY22/23.
Our Responsible Business pillar includes our commitments, targets and performance. Our reported greenhouse gas emissions data has independent assurance, and the corporate governance and ratings firm, Sustainalytics, has given JLR a ‘Low Risk’ ESG Risk Rating ranking JLR third out of 78 companies in the Automotive-Sub-Industry.
A key element of Reimagine is about partnerships with leaders in their field.
We are partnering with NVIDIA, a pioneer in AI and accelerated computing, to give our clients the modern luxury driving experience they expect. We have benefitted from the strength of the wider Tata Group, partnering with Tata Consultancy Services to accelerate our digital transformation through cloud migration, cybersecurity and data services. In addition, Tata Technologies are also implementing cloud-based Enterprise Resource Planning (ERP) software solutions to revolutionise operations for employees and suppliers.
Central to Reimagine, is our partnership with Agratas, whose new UK gigafactory in Somerset will commence production in 2026 and of which we will be the anchor customer.
We also signed a Memorandum of Understanding with Tata Passenger Electric Mobility (TPEM), for the licensing of JLR’s Electrified Modular Architecture (EMA) for the development of TPEM’s premium pure-electric vehicles series.
Through our Open Innovation programme, we are working with global start-ups and scaleups, to bring new thinking and new opportunities, including a collaboration with renewable energy specialists Wykes Engineering Ltd, to develop one of the largest energy storage systems in the UK using second-life Jaguar I-PACE batteries. This provides an important step in our carbon net zero strategy and allows us to explore commercial opportunities in the circular economy.
With Reimagine as our roadmap, we continue to transform our global business today for a sustainable, modern luxury future.
RANGE ROVER
Under Reimagine, our brands are further establishing their position in the luxury segment. In May, 2023, we launched an SV Bespoke commissioning service for Range Rover, offering clients enhanced levels of personalisation and refinement, with an extended choice of materials, colour combinations and finishes.
In the same month, we announced the new and superlative Range Rover Sport SV Edition One, the most powerful Range Rover Sport ever. Such was its desirability that invite-only orders for this vehicle were fully reserved ahead of its launch in May.
Its arrival coincided with Range Rover Sport being named “Large Premium SUV of the Year” by Auto Express magazine, which declared it had “takenon the best alternatives from Germany and elsewhere … and come out convincingly on top”.
In August 2023, we marked the first year of Range Rover House, which has seen 15 installations across the world, showcasing the brand’s unique modernist design philosophy to clients through curated experiences reflecting local cultural trends.
Range Rover House will continue to provide curated luxury experiences for select clients globally, including previews of exclusive new models and editions, set in highly desirable destinations.
The final Range Rover House installation of 2023, at Le Royal Monceau in Paris, France, was a celebration of the new Range Rover Evoque, which introduced new design and technologies to amplify its modern luxury credentials.
Matching refined exterior updates to a new interior with the latest technologies and material innovations, new Range Rover Evoque delivers the calm and tranquillity that is the hallmark of a Range Rover.
At the end of the calendar year, we opened the waiting list for Range Rover Electric, which gained 13,000 signatures in the first 28 days of going live, marking another key milestone in our electrification journey. The first of its kind in the brand’s 54-year history, Range Rover Electric is a feat of engineering with distinguished performance and engineering enabled by one of the most rigorous engineering sign off programmes embarked upon.
DEFENDER
Defender also headed into new territory. The launch of its official TikTok account in collaboration with pioneering British rapper, songwriter and actor Kano, set out to reach a new digital audience in parallel with the community of Defender owners.
Meanwhile the Defender 130 Outbound launched globally too in 2023 and heralded an expansion of the Defender collection, with distinctive design enhancements and a five-seat spacious interior to satisfy the most adventurous of clients.
Later in June, Defender was announced as the Official Vehicle Partner of the UK’s 2023 Glastonbury Festival at Worthy Farm. We provided a fleet of 20 low-emission, Defender 110 electric hybrids to transport headline artists to the Pyramid Stage in comfort, with the vehicle’s batteries charged using power generated by Glastonbury’s solar panels and other low carbon and low emissions energy sources.
JAGUAR
As a fitting tribute to the last Jaguar internal combustion engine sports cars, the sound of its last V8 F-TYPE sports car was recorded, to be archived alongside other culturally significant sounds in the British Library in London.
A collection of 30- and 47-second tracks were composed from special sound recordings inside the acoustically accurate semi-anechoic chamber at our Gaydon Engineering Centre; an innovative way to celebrate this part of the iconic British brand’s history.
This felt a fitting tribute as we announced the last chapter of Jaguar’s history as a producer of internal combustion engine sportscars by launching our 75 edition F-TYPE denoting the 75 years of Jaguar as a sports car maker.
Jaguar will be radically reimagined in 2025, as an exuberant, compelling and truly aspirational all-electric, modern luxury brand. This vision for Jaguar is captured in its purpose to be a copy of nothing, illustrating its promise to do things differently, and attract a new audience of discerning clients.
Doing so recognises Jaguar’s provenance in British creativity since 1935 and captures the spirit of the brand at its best, in creating distinctive, progressive design-led cars, and a true sense of aspirational luxury.
We successfully reinvented the Defender and we can be trusted to reimagine Jaguar.
ENTERPRISE
The strength of being part of the Tata family and the synergies we form together were amplified this year, not just benefitting JLR, but also the wider group.
This was evident as we took another step in our digital transformation by launching a new collaboration with sister company Tata Technologies. The initiative will deliver end-to-end integrated Enterprise Resource Planning (ERP) to transform our manufacturing, logistics, supply chain, finance and purchasing modules by bringing data from multiple departments into a single source.
We also expanded our long-standing partnership with another sister company, Tata Communications, to accelerate our digital transformation. Their expertise, including cloud migration, cybersecurity and data services, as well as connecting JLR to its 128 sites worldwide, will reduce net expenditure, unlock free cash flow, increase production speed and make our supply chain more secure and robust.
We entered into a Memorandum of Understanding for the licensing of our Electrified Modular Architecture (EMA) to Tata Passenger Electric Mobility (TPEM) for use in their all-new premium electric car named, the Avinya. The partnership will accelerate the development of TPEM’s premium pure-electric vehicle series.
In July our parent company Tata Sons announced that Agratas would build a gigafactory in the UK, with the site later confirmed as the Gravity Business Park in Somerset. This news was another critical milestone in our Reimagine strategy because, as the anchor customer of the gigafactory, it ensures that we will have a stable and secure supply of battery cells, at the right cost, and near to our UK manufacturing base.
Last year, we marked the first anniversary of our Open Innovation programme by announcing the expansion of its global presence, into Silicon Valley, USA after successful growth of ecosystems in the UK and Brazil.
In the past year, the Open Innovation programme has engaged with over 600 start-ups globally, resulting in 27 co-creation projects.
Meanwhile, InMotion Ventures, our corporate venture capital arm and an essential part of our Open Innovation ecosystem, has invested in seven companies focused on helping to provide more sustainable products and services. For example, Gen Phoenix and Uncaged are helping us identify alternative materials to conventional leather, while Deepform is a startup exploring how we can reduce waste in our body in white operations.
ELECTRIFICATION
In 2023 we accelerated the transformation of our facilities for electric vehicle production, as we prepare to electrify all our brands by 2030.
Following our announcement that Halewood, in Merseyside, UK, will become our first, all-electric production facility using our pure-electric modular architecture (EMA), the site has seen huge transformation as the teams work and prepare to bring our first medium-sized EV vehicle to life.
Physical changes include extending the body construction building, installing new assembly lines, adding hundreds of new robots and installing a painted body shop.
All of these represent major milestones accomplished on our EMA journey. Elsewhere, at Solihull in the West Midlands, UK, our teams have been preparing the plant to build the first Range Rover Electric models. The teams installed a new £70m underbody facility as well as a new body shop costing around £130m, to achieve further production increases for our Range Rover models.
Range Rover Electric will be built at Solihull on the flexible Modular Longitudinal Architecture (MLA) alongside existing mild and plug-in hybrid Range Rover vehicles, enabling us to offer vehicles suitable for specific regional legislation and tastes.
Our medium-sized EMA architecture will be pure-electric only, to appeal to regions moving faster towards electrification and our pure-electric Jaguars will target a new luxury client and reposition the brand in the luxury space.
In Nitra, Slovakia, colleagues celebrated the plant’s fifth anniversary producing our incredible Defender and Discovery models. Nitra has been a huge success story taking a third shift of production in its stride. It was also confirmed Nitra would remain the home of Defender as it commences production of electric vehicles by the end of the decade, securing its future in the electric era.
As part of our existing Future Skills Programme that will see 29,000 trained in electrification and digital, we launched two recruitment initiatives during the year. In the summer of 2023 we announced the need for 100 highly skilled technicians to maintain production equipment in a new body shop at Solihull, as well as 200 technicians and test engineers to support the testing and development of electric vehicles at our Gaydon and Whitley sites.
In the final quarter, we launched a recruitment drive for 250 propulsion engineers to develop our next-generation propulsion systems, 40 of which were battery specialists responsible for building JLR’s core competency in battery chemistry, design and systems.
We also confirmed the future for our Engine Manufacturing Centre in Wolverhampton, UK, which has been renamed the Electric Propulsion Manufacturing Centre. Its future will be producing electric drive units
(EDUs) and battery packs for electric vehicles across our brands. Our engineering centre in Whitley, Coventry, also opened a £250 million, state-of-the-art Future Energy Lab for testing and developing EDUs for all our brands
This site is an important milestone in our electrification journey, taking the design and development of critical components in-house and providing greater ownership and oversight of our electric vehicle supply chain.
SUSTAINABILITY
Progress towards our electric future reaffirms our commitment to our Reimagine strategy, with an aim to be carbon net zero across our products and operations, by 2039.
To that end we announced a collaboration with Wykes Engineering Ltd, a leader in the renewable energy sector, to develop one of the largest energy storage systems in the UK, capturing solar and wind power in second-life Jaguar I-PACE batteries. Using batteries supplied from prototype and engineering test vehicles, our initiative currently stores a total of 2.7 MWh of energy.
As well as being an important step in our carbon net zero strategy, this collaboration allows us to explore a commercial opportunity in the circular economy. Second-life battery supply for stationary applications, such renewable energy storage, could exceed 200 gigawatt-hours per year by 2030, creating a global value potential of over $30 billion.**
During the year, we also detailed how we aim to generate a quarter of our UK electricity by implementing new onsite and near-site renewable energy projects, cutting energy bills, reducing Co2e emissions and reducing reliance on grid energy.
Plans include the installation of a variety of solar panels with the first three projects at our Halewood plant in Merseyside, the Electric Propulsion Manufacturing Centre (EPMC) in Wolverhampton, and our Gaydon headquarters due to be completed by the end of 2025.
At Gaydon, a new 18.2 MW ground-mounted solar array combined with existing roof-mounted solar array will generate approximately 40 per cent of the site’s energy.
Self-generated solar capacity at the EPMC will increase by 145 per cent through the expansion of existing rooftop arrays to generate 18.9 MW, enough power to cover 30 per cent of the site’s total consumption.
Towards the end of the year, we were pleased to be awarded our ESG risk rating from Sustainalytics. We further improved, with our ‘Low Risk’ score lowered from 17.1 to 15.6, and ranking improved from the fourth to the third lowest risk out of 74 companies in the Automotive Sub Industry.
With sustainability at its core, the Jaguar TCS Racing Formula E team continues to showcase our all-electric capability and drive new innovations to benefit our electric future.
In 2023, after sixteen races across eleven cities and five continents, Jaguar TCS Racing finished runners-up in the ABB FIA Formula E World Championship with the team’s biggest points haul to date, and successes including eleven podiums, four wins, and three pole positions.
As well as racing for the world championship, we and our world-class portfolio of partners are focused on transferring what we learn on the racetrack, to Jaguar’s reimagining as an all-electric modern luxury brand from 2025.
PEOPLE
We are a proud inclusive employer and believe that becoming a more diverse business is fundamentally linked to our increasing performance, and to understanding and exceeding our clients’ expectations.
Demonstrating our commitment to inclusivity and expression, in FY23/24 we launched a new, inclusive workwear collection following 18 months of research and an investment of over £3 million. Led by the voices of our people, we developed adaptable designs and inclusive provisions that prioritise comfort and durability, without compromising the diverse needs of our creators. Using a combination of recycled polyester and cotton, the new JLR workwear is available in over 300 variants, including maternity trousers and JLR branded Hijabs, all with unique temperature regulation features.
By introducing our new JLR workwear, we hope to reflect the diversity of our people, and ensure our corporate identity reflects their own expression of their gender, faith or background.
Throughout the year, we continued to drive a strategic people agenda, implementing fundamental changes to our performance approach through Creators’ Conversations, underpinned by immersive developmental experiences for our leaders and managers, building their capability to lead and manage in the culture we aspire to.
To understand our people further, we carried out our first ever wellbeing survey, with 18,000 employees revealing that 74.8 per cent felt their manager cares for them and 73.9 per cent feel supported to make decisions about their health and wellbeing. This survey provided valuable insights that will help us improve the psychological and emotional health of our people.
To bring us closer to the communities in which we operate and to inspire the next generation of JLR creators, we held 10 Proud Creators Days this year, where over 28,000 colleagues, families and friends came behind the scenes to learn about design and engineering at Gaydon and Whitley, and manufacturing at four sites across the UK.
Our proud creators also dedicated 22,960 hours to helping others in their own communities this year. Our employee networks raised over £200,000, while our ‘JLR Challenge’ generated over £50,000 for good causes from 500 colleagues taking part in a variety of challenges in the Cambrian Mountains. In November 2023, our UK colleagues also raised £29,000 for the annual ‘Movember’ charity campaign raising awareness of men’s health issues.
Around the world, we also joined the PRIDE community in 2023, taking part in annual PRIDE parades, with Jaguar returning as a sponsor for the parades in Birmingham, UK and New York, USA.
We are clear that the more we celebrate each of our individual backgrounds, needs and perspectives equally, the better we understand and exceed our clients’ expectations.
**McKinsey, Second-life EV batteries: The newest value pool in energy storage and McKinsey, Battery 2030: Resilient, sustainable, and circular
INTRODUCTION TO SUSTAINABILITY
Sustainability is at the heart of our Purpose, enabled through our Reimagine strategy and our Creators’ Code.
Sustainability is about meeting the needs of the present without compromising the ability of future generations to meet their needs.
Delivering our products and services in a way that reduces negative impacts on people and the planet, and maximises the positive, is a responsibility we take very seriously. Sustainability is a journey which requires engagement and commitment from all areas of our business and from wider stakeholders. Sustainability is not only the right thing to do but will be a key driver of value creation.
Our strategy is guided by the Tata Group’s Project Aalingana as well as the rich history that we and Tata have in giving back to the communities that we touch as a business. Our strategy comprises three pillars:
Planet Regenerate, Engage for Good, and Responsible Business and is underpinned by our Environmental and Social Policy.
PLANET REGENERATE
Transforming our business across the full value chain
Carbon net zero by 2039
Circular Economy
Nature and Biodiversity
ENGAGE FOR GOOD
Acting as a global citizen for sustainable development in the communities and environments in which we operate
Reduce inequalities
Youth Development
Supporting the vulnerable
Nature and Biodiversity
RESPONSIBLE BUSINESS
Doing business responsibly and with integrity
Proactive ESG risk management
Transport reporting
Clear standards and policies