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Jaguar Dealer Sounds Alarm: 'There Is No Business Case For The Brand'

While some dealers remain optimistic, others are worried about the future.

Jaguar Type 00 Concept (2024)

Photo by: Jaguar

Adrian Padeanu

By: Adrian Padeanu

Jan 19, at 3:48am ET

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THE BREAKDOWN

Jaguar dealers have mixed feelings about the new direction.
The first production car in the EV-only era debuts this year.
Jaguar allegedly won't sell cars, but rather lease them.

Jaguar wants to step out of BMW’s shadow and chase Bentley by moving upmarket through a bold rebranding. It’s waving goodbye to combustion engines once and for all, putting all of its eggs in the EV basket. We were supposed to see the first production model of this new era before the end of 2025, but its reveal has been pushed back to later this year.

Before Jaguar reinvents itself as a super-luxury brand, some dealers are predictably concerned about how the new direction will unfold. German business newspaper Automobilwoche cites a sales representative who spoke under the protection of anonymity about the uncertainty surrounding Jag’s future:

‘If we are honest, there is currently no business case for the brand. We have signed that we want to continue with Jaguar in the future. However, whether we will fulfill this declaration of intent will only become clear once we know Jaguar's future strategy. Then we can decide whether it suits us or not.’

Photo by: Jaguar

But it’s not all doom and gloom. Andreas Everschneider, CEO of the Association of German Jaguar and Land Rover Dealers, is far more optimistic, yet remains cautious: “The new start is an opportunity. But we don't know what to expect, how big the market is, or which customers will buy the vehicle.”

Similarly, Salvatore Colangelo, managing director of Glinicke British Cars, hypes the forthcoming products but is uncertain about the target market: “Brand, design, and technology – the new Jaguar models are something special. This is a new path. The question remains: Who are our future Jaguar customers?”

Jaguar Won't Sell Cars. Only Lease Them?

Everschneider told Automobilwoche that Jaguar won’t sell the new electric grand tourer, but rather lease it. We’ve reached out for confirmation and will update the article once we hear back. Meanwhile, the decision to embrace a lease-only strategy reportedly stems from the company’s desire to control the used car market. Should too many vehicles change hands, it would lower residual values and hurt Jaguar’s aspirations to become a true Bentley competitor.

Everschneider also pointed out that Jaguar must not fall into Mercedes’ trap of making too many cars. The German luxury brand has been criticized for pumping out volume-oriented products like the A-Class, which have hampered its premium positioning. Then again, all rivals have been doing the same, including BMW with the 1 Series. Audi has even gone a step lower by tackling the subcompact segment with the A1 and Q2.

Jaguar Type 00 Prototype Testing

Jaguar Type 00 Prototype testing

Source: Jaguar

Jaguar Won't Chase Volume

Dealers cited by Automobilwoche claim the new strategy at Jaguar calls for annual production of only 10,000 units. It’s a far cry from 2018, when the Tata Motors-owned company peaked at 181,500 sales. By comparison, BMW sold 2,169,761 cars last year, when Mercedes moved 1,800,800 vehicles, while Audi delivered 1.6 million units.

Since Jaguar is now chasing Bentley, it makes more sense to look at Crewe’s sales figures. Last year’s numbers aren’t out yet, but it’s worth reminding you that the British automaker delivered 10,643 vehicles in 2024 and 13,560 in 2023. Its best year ever was 2022, when it sold 15,174 cars.

Jaguar dealers have yet to receive the necessary training to lure in customers, but the process is starting this month. Order books are reportedly opening in either March or April for those willing to pay at least $130,000. Jaguar has made it clear that the production-ready Type 00 will be available strictly as an EV.

Photo by: Jaguar

Motor1's Take: The old Jaguar ways didn’t work, so it was time for a change. Whether such a drastic shift to low-volume, high-margin models will pay off remains to be seen. Going all in on EVs will certainly limit its appeal, since wealthy buyers still want combustion engines. Case in point, Mercedes is committing to Maybach’s V12, and BMW continues to back the twelve-cylinder powerhouse found in Rolls-Royce models.

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Jaguar knows it’ll lose most of its clientele, acknowledging that 85 percent of current buyers won’t return. However, it believes dramatic styling and a bespoke EV platform can convince deep-pocketed customers to take the plunge. To increase its chances of carving out a niche, an SUV will follow the long-hood GT.

EVs are notorious for their slim profit margins, if any, so it’ll be interesting to see whether Jaguar can generate sufficient returns while pursuing such a drastically lower annual sales target.

Jaguar Is Shaking Things Up:

Give Jaguar a Chance

What Happened to Jaguar?

Source: Automobilwoche

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