The switch to an electric future will involve moving car production from JLR’s Castle Bromwich factory east of the central England city of Birmingham to nearby Solihull.
Chief Executive Thierry Bollore said the firm is “exploring opportunities to repurpose” the Castle Bromwich plant, leading to speculation it could be used for battery production.
Jaguar Land Rover also said that the far more profitable Land Rover brand will produce its first all-electric model in 2024 as it, too, phases out internal combustion engines.
“We have all the ingredients at our disposal to reimagine the business and the experiences our customers seek, to reimagine the benchmark of luxury,” says Bollore.
The Society of Motor Manufacturers and Traders, the British car industry’s lobby group, said the announcement represents “an injection of confidence” into the sector, which has suffered over the past year during the coronavirus pandemic.
“It was clear that the Jaguar brand has been in trouble for some time, the sales really haven’t hit a critical volume to justify the business carrying on as it was,” says Jim Holder, editorial director of weekly British motoring magazine Autocar.
“But I think what’s really critical and perhaps what did catch some people out is the fact that they’ve drawn this line in the sand.
“They have committed to this all-electric future in the not too distant future. It is really as major as a reinvention of the brand. And I think that undertaking perhaps was more significant than some people were expecting.”
Jaguar’s 2025 target comes five years ahead of the British government’s plans to ban the sale of new gasoline and diesel cars by 2030.
“I think when you see brands like Jaguar committing to do it much earlier, then it does give a demonstration of the growing confidence that consumers will be ready to make the transition and that the technology in these electric vehicles will be up to a standard that consumers will want to buy it,” says Holder.