JLR is expanding powertrain choice across its brands, adding full hybrid technology to future vehicle programmes as it targets a return to growth.
The manufacturer outlined the next phase of its Reimagine strategy at an investor update in Gaydon, confirming that future Range Rover, Defender and Discovery models will offer greater propulsion flexibility, while Jaguar remains an electric-only brand.
The announcement follows a challenging FY26 in which revenue fell 20.9% to £22.9 billion and profit before tax and exceptional items dropped to £14 million from £2.5bn a year earlier, affected by US tariffs, weakness in China, the Jaguar model transition and disruption caused by a cyber incident.
JLR said it is targeting medium-term double-digit revenue growth through its House of Brands strategy while continuing with its previously announced £18bn investment programme for FY26.
Cost reduction programme
The company also outlined plans to deliver £1.7bn of cost savings over the next two years as part of a programme designed to improve resilience and reduce breakeven volumes.
The initiative will focus on lowering “material, warranty and fixed costs”, helping move breakeven production levels towards 300,000 vehicles.
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Chief executive P.B. Balaji said: “As we enter a critical business delivery phase of our Reimagine strategy, launching five new products over the next two years across our incredible House of Brands, now is also the time to evolve our plan to offer global markets greater propulsion choice to unlock growth and build resilience.”
Hybrid option added to EMA platform
A key development is the introduction of full hybrid electric vehicle (HEV) capability to JLR’s Electrified Modular Architecture (EMA), which underpins future products built at Halewood.
The move marks a shift for the platform, which had previously been positioned around battery electric vehicle technology.
JLR said the change reflects differing levels of demand for electrification across global markets and gives customers more choice alongside its existing mild hybrid, plug-in hybrid and battery electric offerings.
Later this year the company will launch the Range Rover Electric and Range Rover Sport Electric from Solihull, while also revealing the first Range Rover model built on the EMA platform.
A new Defender family model has been confirmed as the second vehicle to launch on EMA and will also gain future HEV capability.
Discovery will continue as a standalone brand within the House of Brands structure, with JLR promising further announcements on future products and propulsion technologies.
Jaguar, meanwhile, will remain exclusively electric. The first model in its new era, the four-door Jaguar Type 01 GT, will be revealed later this year and manufactured in the UK at Solihull.
Focus on profitable growth and the US
Alongside its product plans, JLR said it will increase its focus on North America, which it described as its biggest market and a key source of future growth.
The manufacturer recently signed a non-binding memorandum of understanding with Stellantis to explore product and technology development opportunities in the US.
JLR said Defender would play a central role in those discussions as it explores opportunities in new vehicle segments aimed at North American customers.
Balaji said: “To truly manifest the power of our brands, we will increase our focus on North America, our biggest market.
“The rising demand for luxury products coupled with the strong preference we see for our brands signals significant growth potential.
“Apart from accelerating our existing offerings, we are also exploring new high potential segments for our Defender brand, which will allow us to offer tailored luxury products and experiences for even more of our US clients.
“Our aspiration, in the coming years, is to grow our US business to the size of the entire JLR business as it exists today.”
JLR said it would also continue investing in other growth markets, including India and the Middle East.