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Sixty-Seventh Annual Report 2011-2012
technological capabilities. In line with this objective, the
company is involved in a number of advanced research
consortia that bring together leading manufacturers, suppliers
and specialists.
Products and environmental performance:
The Company’s
strategy is to invest in products and technologies that position
its products ahead of expected stricter environmental
regulations and ensure that it benefits from a shift in consumer
awareness of the environmental impact of the vehicles they
drive. The Company is committed to continued investment in
new technologies, including developing sustainable
technologies to improve fuel economy and reduce CO
2
emissions. The Company is the largest investor in automotive
R&D in United Kingdom. The Company’s environmental vehicle
strategy focuses on new propulsion technology, weight
reduction and reducing parasitic losses through the driveline.
Projects like REEVolution, REHEV and Range-e are some
examples of the Company’s research into the electrification of
premium sedan and all-terrain vehicles.
China andother developingmarkets:
The Chinese economy
is forecast to grow at above 8% over the next few years. Whilst
light vehicles sales are expected to grow at around 10% p.a. in
China, the global light vehicle sales are expected to grow at
4.2% p.a., with South America, China and South Asia expected
to out-perform the average. With an established network of
dealers in place in these markets and an updated product
range, Jaguar and Land Rovers brands are well placed to
benefit from this growth. The Joint Venture in China with
Chery Automotive, currently pending approval by Chinese
authorities, will give Jaguar Land Rover an additional scope to
improve our position in that market.
Engine plant:
Jaguar Land Rover is developing a new engine
plant, alongside new, more fuel efficient engines. This
will enable Jaguar Land Rover to improve their offering in
terms of more efficient product and give us better control
over engine supply to markets.
Grow the business through new products and market
expansion:
Jaguar Land Rover offers products in the premium
performance car and all-terrain vehicle segments, and it
intends to grow the business by diversifying the product range
within these segments, for example by offering different
Powertrain combinations. The new Range Rover Evoque has
helped expansion into a market segment that is attracted by
a smaller, lighter and more “urban” off-road vehicle than the
market segment in which the company’s Range Rover models
traditionally compete, while the new 2.2-litre diesel XF caters
for a much wider group of potential customers, particularly
company car drivers. As a producer of distinctive, premium
products, the Company believes that it is well positioned to
increase revenues in emerging affluent countries with growing
sales potential.
Transform the business structure to deliver sustainable
returns:
The Company plans to strengthen operations by
gaining a significant presence across a select range of products
and a wide diversity of geographic markets. One key
component of this strategy, which continues to deliver positive
results, is the Company’s focus on improving themix of products
and the mix of markets. The Company also plans to continue to
strengthen business operations in addition to vehicle sales,
such as spare part sales, service and maintenance contracts.
Investment in product development and technology :
One of the Company’s principal goals is to enhance its status as
a leading manufacturer of automotive vehicles by investment
in products, R&D, quality improvement and quality control.
The Company ’s strategy is to maintain and improve its
competitive position by developing technological ly
advanced vehicles. Over the years, the Company has enhanced
its technological strengths through extensive in-house
R&D activities.
The Company considers technological leadership to be a
significant factor in its continued success, and therefore
continues to devote significant resources to upgrading its