JLR expects modest revenue growth in FY25, sets long-term target of £38 billion in sales

Tata Motors-owned British luxury carmaker Jaguar Land Rover has set a revenue target of £30 billion for the financial year 2025, implying a growth of a little more than 3%, with a long-term vision of reaching £38 billion.

JLR is also targeting an earnings before interest and taxes (EBIT) margin of 10% in FY26, and expanding it to 15% in the long term, as per the presentation made on Investor Day 2024.

The British automaker expects to remain net cash positive this year with a free cash flow of £1.8 billion, which it eventually wants to take up to £3 billion. In FY24, the company had a free cash flow of £2.3 billion.

JLR delivered a strong financial performance in FY24 with record revenue of £29 billion, fueled by higher production and sustained demand for luxury vehicles globally.

The automaker’s EBIT margin during the year also saw a sharp improvement to 8.5 percent and is expected to remain at the same level in FY25. EBIT growth was driven by improvement in sales, product mix and new platforms.

“By increasing free cash flow, we reduced our debt and made huge strides towards the target of reaching net debt zero by the end of FY25,” JLR Chief Executive Officer Adrian Mardell.

The automaker has also expanded its five-year investment plan till FY28 to £18 billion from £15 million as it prepares to transform existing manufacturing facilities supporting the development of electric, autonomous, AI and digital technologies.

In FY24, JLR invested £3.3 billion and it plans to invest £3.5 billion this year, followed by another £3.8 billion in the next financial year. JLR has also set a long-term annual investment target of £4 billion.

“We began reconfiguring our production facilities for electrification, including making Halewood in Merseyside our first ever all-electric production facility, and upskilling our diverse workforces,” Mardell said.

JLR’s parent company Tata Motors’ India business is now debt-free, and it is on track to become debt-free on a net, consolidated basis in FY25 in its automotive business. Tata Motors also marked a landmark achievement in the Indian automotive industry in FY24 by becoming the first domestic automaker to breach the USD 50 billion mark in annual turnover.

JLR is the main revenue contributor of Tata Motors, accounting for around 70 percent of its consolidated revenue from operations. The remaining revenue comes primarily from the commercial vehicle business – around 18 percent – and the India passenger vehicle business – 12 percent.

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