The Jaguar Land Rover’s Jaguar brand will be fully electronic by 2025, the carmaker said.
The company will launch electronic models across its entire Jaguar and Land Rover range by 2030.
The company said it would keep three UK factories open as part of the new strategy.
However, it has dropped plans to build an electric version of its XJ luxury sedan, built at the Castle Bromwich factory.
Chief executive Thierry Bolori said the Castle would focus on long-term “non-manufacturing” activities instead of the Bromwich plant, without elaborating.
The company plans to spend about 2.5 2.5 million a year on new technology for its cars.
It will also invest in hydrogen fuel technology. Even after working with combustion, hydrogen burns and produces water only as a by-product.
Transportation Secretary Grant Shaps said the announcement was “a huge step forward for UK car production”.
Carmakers in Europe and China are under pressure to meet stringent carbon emissions requirements, as well as consumer demand for powerful electric vehicles with a sense of luxury or performance.
The UK plans to ban the sale of new petrol and diesel cars from 2030
Bentley Motors, a luxury car brand owned by German Volkswagen, said in November that its offer would be fully electric by 2030, and last month General Motors said it was aiming for a zero-emissions lineup by 2035.