The owner of the luxury marquee brands is also looking to increase its earnings before interest and tax (Ebit) margins from 4 per cent to more than 10 per cent by FY26. Of this while 300 basis points will come on back of a refocus on its product portfolio, the remainder will be led by the new vehicle architectures.
In the works is rationalization of the architectures with three new electric first architectures including Modular Longitudinal Architecture, Electrified Modular Architecture and Pure Battery Electric Vehicle platforms, Thierry Bollore, chief executive officer, JLR said in his presentation. The Reimagine strategy crafted by him will focus on increasing the company's share in the most profitable segments.
JLR expects to be cashflow positive by FY23 and start generating net cash by FY25. Meanwhile it will realise the full benefits (6 billion pounds) of project charge by the end of March quarter. JLR has managed to bring down the whole sales break-even volumes from 600,000 in FY19 to 400,000 to 450,000 units now. The move will help the company withstand the cyclicality in sales and boost margins.
JLR will focus on profitable segments
EBIT margins to jump to 10% by FY26 from the current 4%
It will be cash flow positive by FY23
Set to reduce manufacturing capacity by 25% over 5 years
Plans to rationalise number of platforms
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