“No Business Case Exists for the Brand”
Jaguar is navigating a transformative phase as it shifts to an electric-only lineup, raising concerns among its dealers. The legacy automobile manufacturer plans to introduce its first electric model this year, marking a historic departure from traditional combustion engines.
No Business Case Exists for the Brand
Jaguar’s strategy has drawn mixed reactions from its dealers. Some express skepticism about its viability. A dealer, speaking anonymously, summarized the prevailing sentiment: “If we are honest, there is currently no business case for the brand.” He highlighted the uncertainty surrounding Jaguar’s future trajectory and emphasized that dealer commitments hinge on the clarity of the brand’s strategic direction.
Optimism Amid Uncertainty
In contrast, Andreas Everschneider, the CEO of the Association of German Jaguar and Land Rover Dealers, shares a more optimistic outlook. He sees the shift as a valuable opportunity, even though there is uncertainty regarding market size and target consumers. Salvatore Colangelo, the managing director of Glinicke British Cars, acknowledges the uniqueness of the upcoming Jaguar products but questions who the new clientele will be.
Lease-Only Strategy
Reports indicate that Jaguar will adopt a lease-only model for its electric grand tourer, a strategy designed to retain control over the used car market. This move aims to protect residual values and enhance Jaguar’s positioning against competitors like Bentley. Everschneider has voiced concerns about avoiding high production volumes, cautioning against the pitfalls faced by Mercedes in over-saturating its market segment.
Sales Numbers and Future Goals
- Jaguar plans to limit annual production to 10,000 units.
- This figure starkly contrasts with 2018, during which it sold 181,500 vehicles.
- Current competitors like BMW and Mercedes have reported sales of over 1.8 million vehicles.
Jaguar’s recent sales figures show a steep decline, with only 10,643 vehicles sold in 2024, compared to 15,174 in 2022. This shift toward a luxury market necessitates significant changes in dealer training and customer engagement strategies, which are set to commence shortly.
Price and Market Strategy
Potential buyers can expect to pay at least $130,000 for the new vehicle, which will exclusively feature electric powertrains. Jaguar acknowledges that the transition to EVs may alienate a majority of its current clientele, with expectations that 85 percent may not return. However, the brand is optimistic that innovative styling and an advanced EV platform will attract affluent buyers.
To carve a niche in the luxury market, Jaguar also plans to expand its lineup with an SUV model following its initial electric grand tourer. Despite the challenges inherent in the EV market, Jaguar aims for profitability even within a smaller production framework.
As Jaguar forges ahead, all eyes will be on how effectively the brand navigates this uncertain landscape and whether its plans will resonate with an evolving customer base.
