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Tata Motors
TATA MOTORS

ANNUAL REPORT
2019-2020



Jaguar Land Rover – Transformation

Jaguar Land Rover – Transformation
Continuing to focus on five fundamental priorities







Launches

JLR continues to execute its product and technology plans, including the start of the new Land Rover Defender sales and the launch of Range Rover Evoque and Land Rover Discovery Sport plug-in hybrids (with a new three-cylinder Ingenium engine).

JLR also continued to update its existing model range with industry-leading design and technology, including the latest infotainment systems and full-battery electric and hybrid propulsion. The new Land Rover Defender is the embodiment of the innovative spirit of JLR, featuring the groundbreaking Pivi Pro infotainment system and SOTA updates, ensuring ultimate connectivity and enabling customers to benefit from the latest software, wherever they are in the world.

Read more about JLR's new product launches here.

Modular Longitudinal Architecture (MLA)

JLR’s family of Ingenium petrol and diesel engines are based on a modular, flexible and scalable all-aluminium design with a choice of three-, four- and six-cylinder engines that also support mild and plugin hybrid propulsion technology. JLR will begin the roll-out of its next-gen MLA across its product portfolio in the coming year. This flexibility and scalability supports the transformation of JLR’s business with more streamlined engineering and manufacturing processes and increased commonality across its model range, with the aim of improving quality, reducing cost and increasing operational efficiency.

China

As a part of the Transformation strategy, China continues to be a key focus area and the JLR management is taking right actions to deliver on achieving volumes growth and profitability.





Projects Charge & Charge+

The automotive industry continued to experience challenges in FY20, with the outbreak of the COVID-19 pandemic, tariff and trade tensions, Brexit uncertainty and rapid technological changes relating to electrification, automation and connectivity, as well as a more stringent regulatory environment and continuing decline in the demand for diesel-powered vehicles.

As a result, JLR's financial performance has been adversely impacted, but the business responded with decisive action through Project Charge, which had already exceeded its £2.5 billion target, delivering £2.9 billion of costs, profitability and cash flow improvements through FY19 to Q3 FY20.

With the remarkable success of Project Charge, JLR launched Project Charge+. Cash and cost savings to the tune of £600 million were achieved through Project Charge+ in Q4 FY20 and the total cash and cost savings targets through Projects Charge and Charge+ have been revised to £5 billion.

£3.5BN
CUMULATIVE CASH AND COST
IMPROVEMENTS DELIVERED BY CHARGE
AND CHARGE+, INCLUDING £2.2BN IN FY20

£5BN
CUMULATIVE CASH AND COST
IMPROVEMENTS TARGETTED TILL FY21,
THROUGH CHARGE AND CHARGE+











Project Accelerate

Accelerate is aimed at addressing the fundamental challenges that will ensure JLR's sustainable and successful future.

ON-TIME, QUALITY PROGRAMMES

  • Optimise resource planning
  • Drive consistency and commonality within the programme delivery process
  • Step up risk and change management
  • Mindset and process discipline
  • Vendor collaboration and quality standards
DELIVERING COMPETITIVE MATERIAL COST

  • 'Should Design' and 'Should Cost' with benchmarking
  • Purchase lifecycle planning and sourcing
  • Customer value-driven tech standards
  • Make versus Buy
ENHANCE SALES PERFORMANCE

  • Positioning, pricing and launch approach
  • Customer-centric product and feature offerings
  • Customer marketing effectiveness
  • Customer service and quality perception
  • Fix right first time – rapid diagnosis and issue resolution

Outlook

JLR anticipates that the challenges facing the auto industry will continue and that the impact of the COVID-19 pandemic is likely to continue impacting the business during Q1 FY21. However, JLR expects Project Charge+ and Project Accelerate and a strong pipeline of new and refreshed products to put it in the best possible place to withstand these challenges and fundamentally strengthen the business thereafter.

JLR is prioritising the conservation of cash and focused investments into key products. This is being done through demand-led production decisions, rigorous cost controls and a freeze on non-product non-critical spends.