£370m investment underlines JLR growth ambitions as sales rise 55%
JAGUAR Land Rover has underlined its ambitions for its flagship 4×4 with an investment of £370m to upgrade its production facilities.
The figure virtually mirrors the investment the firm is making in its new engine plant, set for the i54 site outside Wolverhampton, and is a further indication of the company’s intention to increase its global presence.
The launch of its brand new Range Rover comes as latest sales figures for the industry show Land Rover bucking the UK trend with massive growth in what is traditionally one of the quietest months of the year.
Figures released by the Society of Motor Manufacturers and Traders show that new registrations for Land Rover last month rose more than 55%. The volumes are small – 591 vehicles against 381 in August last year – however, the company operates in a niche market so the performance is still credible.
The rise has to be taken in context. Across the sector as a whole, new registrations rose by just 0.1% and compared with its main rivals – Audi (up 6%), BMW (down 11%), Mercedes (up 11%) and Volvo (down 6%) – Land Rover stands out as a shining beacon of success.
The critical factor in its success is the popularity of its Range Rover Evoque model. The small SUV has taken the market by storm since its launch last year.
What will be interesting from now on are the year-on-year comparisons for Land Rover. The Evoque has been on sale in the UK for 12 months now and whether the sales rise can be sustained over the next few months will be a source of interest for market observers.
While the new Range Rover is the latest in a procession of new product launches, its success is unlikely to mirror that of the Evoque because it will appeal to different buyers. It is a luxury vehicle and its sales volumes are likely to reflect this because it is aimed at a certain buyer and not the mass market.
Nevertheless, for JLR to invest so heavily in its new product indicates it has major ambitions for the vehicle, which is sold into almost 170 markets around the world.
The launch of the vehicle follows a three-year engineering project, which is supporting 1,000 jobs in design, product development and manufacturing.
Dr Ralf Speth, Jaguar Land Rover Chief Executive Officer, said: “This outstanding new Range Rover symbolises our commitment to investing in Britain and exporting around the world, delivering class-leading performance, agility, quality and luxury in a model that enjoys iconic status in almost every market.
“As the UK’s leading automotive investor in R&D we are proud of the work that has gone into developing the new technologies and innovations to make the new Range Rover possible.
“Through a £370m investment in our manufacturing facilities we have been able to build the world’s first SUV with lightweight all-aluminium construction, a car that is 20% lighter, with fuel consumption and carbon dioxide emissions reduced by 22%.”
