Who will buy the new Jaguar Type 00?

This isn't the first time Jaguar has repositioned itself, so let's take a look at its potential in the face of rivals like Rolls-Royce and Bentley.

Photo by: Jaguar

By: Juan Felipe Munoz

Dec 6, 2024 at 2:25am ET

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Much has been written about Jaguar's rebranding. The troubled car brand wants to reposition itself in order to survive and move forward. After many years of sales problems and poor public understanding of its positioning, it had no other choice.

However, the hype around the new logo risks distracting attention from the real issue: what potential the new Jaguar has in the higher segments.

This isn't the first time Jaguar has repositioned itself. Indeed, the history of this iconic British brand has been punctuated by changes that have positioned it first as a luxury car brand and then as a premium brand. So let's take a closer look at the current situation.

How big is the luxury car market?

It seems that Jaguar wants to return to its luxury roots and leave the highly competitive premium segment behind. This is the segment in which BMW, Mercedes and Audi control around two-thirds of global sales. This is followed by Lexus, Volvo, Land Rover and 'minor' brands such as Infiniti, Acura, Genesis, Lincoln, Alfa Romeo, Cadillac and, of course, Jaguar.

Last year, the premium segment sold around 9.1 million units, representing growth of 10% compared to 2022. In practice, almost 12 out of every 100 cars sold carried a premium brand.

Jaguar global sales chart 2007 - 2023

Photo by: Motor1.com

Of this total, Jaguar sold almost 64,000 units, an increase of 2%.

Main premium car brands in 2023 by sales volume


BMW	2,153,000
Mercedes	1,872,000
Audi	1,659,000
Lexus	817,000
Volvo	698,000
Land Rover	353,000
Cadillac	350,000
Hongqi	344,000
Genesis	217,000
Lincoln	163,000
Acura	161,000
Infiniti	84,000
Alfa Romeo	70,000
Jaguar	64,000
Polestar	53,000

Meanwhile, in the more exclusive and less crowded luxury segment, 261,000 cars were sold worldwide, an increase of 16% on 2022. The brands in this select group include Rolls-Royce, Bentley, Aston Martin, Bugatti, Ferrari, Lamborghini, McLaren and Pagani, as well as top-of-the-range models from Mercedes, BMW, Audi, Maserati and Porsche. The volumes may seem modest, but the benefits, at least for some brands, are enormous.

Jaguar global sales chart 2021 - H1 2024

Photo by: Motor1.com

The new Jaguar is expected to play against the second-largest luxury group, and not directly against Rolls-Royce or Bentley. This positioning would place it in the most important part of the luxury segment, which represents 83% of the total. Is there room for other players? Yes, of course there is.

In fact, most of these brands have virtually no unsold stock and make customers wait for months to get their new cars. According to Nomad Capitalist, the total number of super-rich has increased dramatically to around 58 million, and is expected to grow in 52 out of 56 markets by 2028.

What are the possibilities for the new Jaguar?

It's too early to say whether the new Jaguar will be a success. However, these days, simply entering a new segment with an excellent product is not enough to succeed. There are many examples of car brands that have improved their vehicles and raised their prices to gain market share in the higher segments, but few have succeeded.

Jaguar Type 00

A brand like Jaguar needs time to tell its new story. It needs to break with its recent troubled past, which has not always made it an attractive manufacturer.

What do you think?

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Comments

A successful repositioning upwards in the automotive segments is the result of many years of consistent quality and product launches, excellent after-sales service and intelligent marketing. Audi, Hyundai and Kia, and more recently some Chinese brands, can testify to this.

We don't know if it will work for Jaguar. The traditional car manufacturers are all facing very difficult times at the moment. Competition from China is making things more difficult, even in the higher segments. What is clear is that Jaguar can't keep doing the same thing and expect a different result. A complete break with the past, while respecting its heritage, is the right decision. It is now up to Jaguar to be consistent with that plan.