JLR Invests $669 Million to Upgrade UK Plant for Electric SUV Production Amid EV Market Challenges

Jaguar Land Rover (JLR) is set to invest £500 million ($669 million) to retool its Halewood factory in England for the production of electric SUVs. This investment follows a previous £250 million expenditure at the facility over the past year. JLR aims to transform Halewood into its first all-electric manufacturing site, although the company has acknowledged that its transition to electric vehicles (EVs) will be more costly than originally anticipated due to weak consumer demand.

The Tata Motors-owned manufacturer plans to spend a total of £18 billion over the next five years to develop electric options for all its models by the end of the decade. JLR’s commitment comes as carmakers across Europe are scaling back their EV ambitions, responding to declining consumer interest and reduced government subsidies, particularly in countries like Germany and Sweden.

Halewood, which was initially opened by Ford Motor Co. in 1963, has produced significant models for JLR, including the Range Rover Evoque and Discovery Sport. The plant is preparing to manufacture medium-sized electric SUVs alongside hybrid and combustion-engine vehicles. However, JLR has yet to announce a timeline for phasing out hybrid or combustion-engine-only models at the Halewood site. Earlier this year, the company reduced its target for fully electric Land Rover models planned for 2026 from six to four.