Jaguar Land Rover receives $670 million loan for electric vehicles
Jaguar Land Rover (JLR) will get a state-sponsored loan of $670 million to shift towards developing and manufacturing electric vehicles. It is a five-year loan that intends to push the automaker's research and development as well as help in the export of battery-powered cars as part of the country’s Export Development Guarantee program, stated UK Export Finance.
UK Prime Minister Boris Johnson wants to establish a local battery-making industry as the UK aims to ban sales of internal combustion engine vehicles by 2030. Jaguar Land Rover had previously stated that Jaguar will stop manufacturing conventional fuel vehicles by 2025. Land Rover will introduce its first fully-electric model in 2024.
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JLR is also taking additional steps to make itself a more sustainable brand apart from planning for electrification. Last year, the automaker led the use of blockchain technology in its digital supply chain for leather to ensure full transparency and sustainability. The initiative, also a first, is a part of the brand's commitment to reduce the environmental and ethical impact of its products across their lifecycle. The company has expressed its plans to achieve net-zero carbon emissions across its supply chain, products and operations by 2039.
The automaker also reported third-quarter sales results recently. It saw a fall in its retail sales by 37.6 per cent compared to the figures in the preceding year. However, the brand's production volume increased by 41 per cent sequentially. JLR's parent company Tata Motors has stated ongoing semiconductor shortage and the rising price of commodities as the factors behind the loss. “The semiconductor shortage is expected to continue through 2022 but is expected to gradually improve as capacity within the supply base increases," it added.