Jaguar's Strategy for Survival

British carmaker Jaguar is undaunted by the criticism its recent rebranding campaign generated.

An online video promoting a redesign received widespread criticism from viewers, who accused the company of being "woke," questioned the design choices, and wondered why the advertisement did not showcase a car.

The company's true difficulty lies in implementing its strategy to recover from declining sales and a weakened brand, according to experts.

"At this moment, the eyes of the world are focused on us, which is precisely what we aimed for," said Jaguar's managing director Rawdon Glover. "As a result, we have everyone's attention. And for me, it's amazing that we can now discuss the vehicle."

The Type 00 concept car was unveiled by Jaguar at Miami Art Week on Monday. Glover stated that the first actual production model of Jaguar is expected to launch in 2026 and will closely resemble the concept.

The vehicle is a four-door, all-electric grand tourer, which makes it a sedan or wagon-like car that offers both high performance and comfort.

Growing problems

In 2017, Jaguar Land Rover achieved an annual sales record, with Land Rover's three lines of muscular SUVs contributing to the success. Jaguar sales increased by 20% to 178,601 units, surpassing the previous year's record. The company hit an all-time high in 2018, thanks to the compact E-Pace SUV and the critically acclaimed I-PACE electric vehicle.

In 2017, Jaguar sold 86,875 units worldwide, but in 2023, it sold only 64,241 units, a significant decrease.

Analysts stated that several factors contributed to the decrease in sales for Jaguar. One factor was the shift in the market towards SUVs, which Jaguar, traditionally a sports car and sedan manufacturer, was not well suited for. Additionally, a series of owners, including larger automakers such as , struggled to support Jaguar.

Aston Martin, like other smaller niche brands, has also faced struggles, according to Karl Brauer, executive analyst for iSeeCars.

"He stated that the two are similar in many ways, including their struggle to find economic viability for their well-known and powerful brand."

Analysts and insiders consider Ford and the current owner's push for Jaguar to produce more cars a mistake.

Charles Tennant, an independent auto analyst and former chief engineer at Land Rover and director at Tata Motors, advised the Indian carmaker on the Jaguar and Land Rover acquisition, stating that going volume definitely didn't help.

"Until we were the last few years, it significantly weakened the brand," Tennant stated.

In the automotive world, Jaguar was once highly respected, with several of its cars being considered classics during the 1930s through the '60s, including the E-Type, a small sports car.

The E-Type, introduced at the Geneva Auto Show in 1961, was reportedly dubbed "the most beautiful car in the world" by Enzo Ferrari, the founder of the renowned Italian car brand.

"According to Karl Brauer, executive analyst for iSeeCars, Jaguar is one of the most iconic British car brands in history. The brand has a significant amount of brand equity and value, but it has been disheartening to see the brand struggle in recent years."

The automaker plans to revive its legacy by temporarily halting car production and disappearing from the market until 2026, when it will launch a fully electric GT priced at around $120,000, significantly above the typical Jaguar range.

"Glover stated, "When the E-Type landed in 1961 in Geneva, it was unlike anything else on the planet. It took a lot of courage and conviction to say that this was what a sports car should look like, and that's the essence of Jaguar. Now, we're reinventing the brand by taking it back to its natural habitat.""

Despite the controversy surrounding the rebranding, some experts predict that the Jaguar may struggle to differentiate itself in a competitive high-end electric vehicle market.

"According to Jessica Caldwell, head of insights for car shopping site and data provider Edmunds, there are more vehicles than consumers in that price range. When examining the market, it appears that electric vehicles, such as the GMC Hummer, are catering to a small market and may be overpriced."