by British automaker Jaguar is undertaking a radical change in its business strategy. Instead of trying to compete with German premium brands like BMW and Audi on sales volume, the company has decided to focus on creating ultra-premium, high-margin electric vehicles.
A Radical Change of Course
Jaguar is embarking on perhaps the greatest transformation in its history. The brand, which long tried to catch up with the German leaders of the premium market, is now drastically changing its approach. The goal is not to sell many cars, but to sell fewer at significantly higher prices, offering a narrow lineup of luxury electric cars.
The first product of this rebranding, planned for next year, will be the production version of the radical Type 00 concept. It will be a low-slung four-door fastback, equipped with three electric motors with a combined output of around 1000 horsepower. This car will not resemble any recent Jaguar, and that is exactly what the company is aiming for.
New Premium Strategy
In an interview with Top Gear magazine, Jaguar’s Managing Director Rawdon Glover acknowledged that the previous business model did not work. Competing with Audi, BMW, and Mercedes-Benz in the so-called “volume premium” segment was commercially unsuccessful. Instead, Jaguar will now adhere to an approach closer to that of Range Rover, with fewer models, each occupying a higher market position.
In UK figures, our average transaction price was around £55,000. Now it will be more than double that, so the center of gravity in the UK will be around £120,000.
Glover added that the starting version of the production Type 00 will cost from £140,000. By setting prices in the mid-hundreds of thousands of pounds, Jaguar plans to occupy a niche above the offerings of German volume brands but below ultra-luxury marques like Bentley, Rolls-Royce, and Lamborghini.
Furthermore, the executive stated that the time when Jaguar’s lineup had seven or eight models is over. Buyers should expect a concise range where all models will be positioned around similar price points.
Technical Features of the Flagship
The first model of the new era will be the most important for Jaguar. Although its design is likely to be controversial, early feedback suggests the brand is creating a truly refined electric car.
Several British publications have already had the chance to evaluate the prototype from the passenger seat. Among them, Autocar noted that the prototype has better handling than any electric car currently on the market.
The car is based on Jaguar’s new electric architecture and a battery with a capacity of approximately 120 kWh. Three electric motors, two on the rear axle and one on the front, together produce about 1000 hp, with 30% of the power directed to the front wheels and 70% to the rear. The suspension on all four wheels is a three-chamber air suspension, which is reported to provide ride quality surpassing even the most luxurious Range Rovers.
Questions About Timing
However, the timing of such a move raises questions. Against the backdrop of cooling demand for electric vehicles in the key American market and Europe’s revision of the internal combustion engine phase-out schedule, Jaguar’s exclusive bet on electricity seems risky.
Unless, of course, the real goal is different. China remains optimistic about premium electric vehicles, and for a brand like Jaguar, success there could make the difference between a bold transformation and an expensive mistake. Success in this region could determine the fate of the entire venture.
This strategy mirrors a general trend in the automotive industry, where traditional brands are seeking new ways to increase profitability in the era of electrification. Jaguar’s shift to exclusivity is a bold but logical step for a brand with such a history, which has always positioned itself as exceptional. Its success will depend not only on the technical characteristics of the new models but also on the ability to convince the world that it deserves a place alongside the highest luxury names, offering a unique combination of British design, cutting-edge technology, and emotions that are not sold in mass volumes.
