What’s the matter with Jaguar? Motor1.com posed this question last year after the company’s 2022 results revealed catastrophic sales figures. Jaguar sold only 77,381 units. To make matters worse, sales declined again in 2023, with just 62,521 cars sold.
To put this into perspective, Jaguar has experienced a significant decline in sales in recent years, dropping from just over 180,000 cars sold in 2019 to nearly a third of that figure over five financial years. According to Bloomberg, the company has also struggled to generate profit.
A review of Jaguar’s financial results reveals that the brand is currently in a very challenging position. The only reason Jaguar-Land Rover is making money is the Land Rover segment, which compensates for Jaguar’s struggles. Jaguar has been largely absent from the automotive group’s financial reports as efforts to address its issues continue. Meanwhile, Land Rover has managed to contribute enough to the overall business to help the conglomerate return to profitability, reporting a profit of $3.3 billion, according to Bloomberg.
Industry experts have pointed out that, over the past 25 years, Jaguar has attempted to compete with German premium models but has had little success. Additionally, the company has transitioned from Ford to Tata ownership but hasn’t established a strong identity. In contrast, Land Rover has managed to carve out a distinctive presence in the luxury SUV market.
In its efforts to differentiate itself, Land Rover has somewhat diluted its own brand by focusing on family-oriented models. The Range Rover was once a standalone product. Recently, the company has successfully reintroduced the Defender as a luxury-focused offering, shifting away from its previous image as an enthusiast SUV.
While Land Rover has evolved to strengthen its brand, Jaguar has struggled with an erratic strategy. In one of its latest movements, the company announced in 2021 that it would transition to an all-electric lineup by 2025.
However, it remains uncertain what it’ll actually deliver by that time.
A Reinvention Reflecting Industry Trends
In November, Jaguar announced that it would discontinue selling its cars. Just a few days later, the company surprised everyone by unveiling its new branding under the slogan “Copy Nothing.” The launch included a vibrant, hyper-colorful video featuring eight individuals, some with distinctly androgynous appearances, alongside a revamped logo. Notably absent from the presentation were any actual cars.
A quick look at the comments under the YouTube video reveals widespread dissatisfaction with the advertisement. Many viewers are left wondering where the cars are, while others believe this marks the company’s demise. Some users also criticize the influence of woke culture on the brand.
However, Jaguar has invited the press to a presentation on Dec. 2 in Miami to reveal what people can expect from the company in the future. Teasers hint at a new vehicle design that suggests luxury, although some observers humorously liken it to an air conditioner. Given that the concept remains vague and open to interpretation, it’s hard to be more specific at this point.
Gabor Schreier, the creative director at Saffron Brand Consultants, told Bloomberg, “That video is a provocation.” He added, “All these established carmakers are in panic mode. They’re trying to hide it, but they are in terrible panic mode, and running into a sort of schizophrenia where they don’t know if they belong to the old combustion world, or to the new EV world.”
In this “panic mode,” Jaguar has decided to completely reset and work on building a new brand image. It appears the company will follow Land Rover’s example and fully enter the luxury electric car market, choosing to sell fewer units at a significantly higher price. This strategy has proven to be the most profitable per unit sold but also carries extraordinary risks. That’s especially the case when you consider that advanced technology is continually evolving in the market for expensive vehicles.
However, Jaguar’s identity crisis isn’t unique in the car industry. The entire sector is undergoing a transformation to move away from a gasoline-driven past toward a more sustainable future.
In some cases, such as with Ford, the changes are less dramatic. The carmaker has split the company into two to focus on different goals. One side aims to produce affordable electric vehicles, collaborating with companies such as Volkswagen to reduce costs. Like Land Rover, the other side focuses on families while omitting the Ford brand from its communications regarding the Mustang or Bronco. It even removes the logo from the vehicles.
Volkswagen is following a similar path in its own transformation. The carmaker is looking to reposition itself as a software company. In 2022, it changed CEOs and witnessed the failures of its Cariad division. Additionally, it’s currently implementing a savings plan of $10.5 billion over three years, which will result in thousands of layoffs.
The situation for German brands isn’t improving either. Chinese manufacturers are making significant strides in their own market, producing vehicles equipped with screens and advanced software. This has transformed China’s perception of luxury vehicles, which previously regarded Western offerings as state-of-the-art technology.
Jaguar’s recent changes have sparked dissatisfaction among journalists. In response, Jaguar-Land Rover CCO Gerry McGovern said the team had “not been sniffing the white stuff.”
In the end, the radical shift in Jaguar’s image reflects a broader trend across the industry.
Image | Jaguar
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