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"It's all about legislation, stupid!" JLR's departure from internal combustion engines

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The British-based luxury carmaker, Jaguar Land Rover, has announced its intention to be a "zero tailpipe" manufacturer by 2036 highlighting a similar move by Volkswagen Group's luxury British-based Bentley Motors, announcing its departure by 2030.

The move by the Tata owned premium brand manufacturer is likely driven among other reasons by European Union legislation, with the phase-out of the so called derogation rule applied to passenger car manufacturers that qualify for “niche” car manufacturer status, and therefore register between 10,000 and 300,000 vehicles per year across the 27 market region. The EU CO2 targets are also replicated by British legislation, in place since the UK departed the European Union in 2021 following a one year transition period. The derogation phase-out will take place between 2026-2028.

2036 will also realistically witness the phase-out of the internal combustion engine across the European Union with the expected fleet average CO2 cut, due in 2035 being so severe it will de facto result in the ban on internal combustion engines across the region.

Paris 2050 targets will also require roughly a 15 year window to clean-up the vehicles in circulation.

The UK also intends to ban the sale of non-zero emission vehicles from 2035.

An accelerating pace of expected tightening legislation in the US following the change in administration as well as ongoing tightening NEV targets in China are all forcing these changes. Jaguar will become a BEV only brand from 2025 JLR's CEO Thierry Bolloré said, during a February 15th presentation. He also went on to say fuel cell testing will begin imminently.

In 2020 Jaguar Land Rover failed to achieve its CO2 fleet average emissions target of 132g/km by 2g/km resulting in a non-compliance fine of 35 million GBP according to company data.

Land Rover plugging in to an electric future

More in-depth analysis is available each month in the European Electric Car Report, available on a monthly or annual basis. The full-year report is available here


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