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The Shift in Jaguar Land Rover's Strategy Jaguar Land Rover has U-turned on plans to shift one of its factories to making only electric cars as part of an effort to focus on growth in the US, as Britain’s largest carmaker further rowed back on the transition away from fossil fuels. Reversing the EV-Only Factory Plan The manufacturer told investors on Wednesday it would offer petrol and hybrid versions of new models, including smaller SUVs that had been planned to shift to all-electric sales. The US Market Focus It aims to make US sales equivalent to the current size of the business – a shift that would imply it selling a further 250,000 cars to wealthy Americans. The US has by far the most millionaires and billionaires capable of affording luxury vehicles such as JLR’s Range Rover, which starts at more than £107,000 ($143,000). Executives at JLR are hoping to win a share of an unprecedented wave of inherited money in the US in the coming decades. The Impact on EV Sales Targets Carmakers across the world have delayed their shift to EVs as governments dilute regulations or, in the case of the US under Donald Trump, removed nearly all incentives to sell battery cars. JLR has already delayed the first sales of its electric version of its flagship Range Rover by a year, and orders for its first electric Jaguar model under a relaunched brand are not expected to open until 2027. The slower shift to more electric sales is also a big factor in the UK government’s decision to water down its EV sales targets. The Future Outlook PB Balaji, who took over as chief executive of JLR last year, 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. “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 will target double-digit revenue growth over the medium term, and it will stick with previous plans to invest £18bn between 2024 and 2029.

The UK's Shifting Electric Vehicle Policy The UK government is poised to water down its 2030 targets for electric vehicle sales after intensive lobbying by the car industry and unions. The government is preparing to consult on less ambitious targets for the transition to fully battery-powered electric cars over the rest of the decade. The Proposed Changes to EV Sales Targets Hybrid vehicles could be allowed to make up a far bigger proportion of the UK's car sales in the medium term by softening the mandate for pure electric cars from 80% of all sales by 2030 to 50%. Government sources stressed that the 2030 ban on the sale of new purely petrol or diesel cars would still apply, meaning 50% of car sales would be hybrid electric. The Financial Impact of the Policy Shift The Unite union, which has campaigned to review the targets, said the mandate could cost up to £11,000 in fines per vehicle and threaten jobs in the sector in the UK. Electric vehicle sales are increasing steadily but continue to lag behind the government's targets after initial years of rapid growth. The Industry's Response to the Policy Shift The car industry body the Society of Motor Manufacturers and Traders declined to comment. However, others reacted with dismay at the news. Businesses in the EV charging sector in particular have stressed the need to keep the mandates in place to drive change. The Future of Electric Vehicle Policy The government's electric vehicle targets, known as the zero emission vehicle (ZEV) mandate, were first introduced under the Conservatives in 2023 to force carmakers to increase sales of electric cars up to 80% by 2030. The latest proposed change would mark the second time since coming to power that the Labour government has weakened the rules by allowing carmakers to sell more hybrid vehicles.