Shares of Tata Motors Ltd rose more than 2 per cent to Rs 986.4 in the afternoon on September 26 after its British arm, Jaguar Land Rover, announced plans to spend 500 million pounds ($669 million) on rebuilding one of its factories in England, which is set to start building electric SUVs.
Jaguar Land Rover (JLR), maker of Range Rover and Land Rover vehicles, has announced plans to double its investment at its Halewood plant near Liverpool, taking total spending to £500 million over the coming years. The company has invested £250 million in the facility over the past 12 months, aiming to make it JLR’s first fully electric plant.
Despite its increased investment, JLR warned that the cost of its transition to electric vehicles (EVs) will be higher than initially estimated, because of waning consumer demand and the continued need to develop combustion-engine and plug-in hybrid models. JLR, a subsidiary of Tata Motors Ltd, now plans to spend £18 billion over five years to introduce electric versions across all its model lines by the end of the decade.
Carmakers across Europe are slowing their EV ambitions as demand wanes and countries such as Germany and Sweden reduce subsidies. Earlier this month, Volvo Car AB backed away from its goal of selling only electric vehicles by 2030, reminiscent of a similar move taken by Mercedes-Benz in May.
The Halewood plant, originally opened by Ford Motor Co in 1963, has recently produced key JLR models such as the Range Rover Evoque and Discovery Sport. JLR plans to produce mid-size electric SUVs as well as hybrid and combustion-engine models at the site. However, the company has not given a timeline for phasing out hybrid or combustion-engine-only vehicles at the facility. Earlier this year, JLR cut its target for fully electric Land Rover models from six to four by 2026.
At around 12 noon, the company’s shares were trading at Rs 985 on NSE, up 2.2 per cent from its previous close. Tata Motors shares have fallen by 10 per cent in the last one month.
