Jaguar Land Rover sees bright prospects in the luxury segment of electric cars as Elon Musk-led Tesla, the world’s most popular zero-emission vehicle maker, is in the mid-premium space, the British firm’s Chief Executive Officer Thierry Bollore said.
“We don’t often talk about competitors. If you look at Tesla today, the reality is that they are not really in the luxury market. They started with a high-end premium and now they are at mid premium which is giving us a huge space”, Bollore told analysts after its parent company Tata Motors announced the March quarter result.
The Model Y and Model 3 of Tesla are priced in the range of $38,700 to $41,200. Both models made up 90 percent of Tesla’s volumes in 2020. The balance 10 percent came from Model S and Model X which are priced in the range of $81200 and $91200.
The premium models have seen a staggering drop in share in just two years. Model S and X used to command a share of 40 percent just as per the 2018 volumes data shared by Tesla. JLR is keen to fill this void.
The I-Pace of Jaguar is priced at nearly $70000 in the US, which is slightly less than the Tesla Model S. However, the Model S and Model X clocked more than three and half times the volumes done by Jaguar I-Pace last year.
But Tata Motors is going for a major pivot for Jaguar including a reposition of the brand. Jaguar will become an all-electric brand by 2025 under the global strategy ‘Reimagine’ announced a few months ago. JLR will re-imagine Jaguar as a pure luxury electric vehicle brand with a new portfolio of emotive designs and next generation technologies.
Jaguar and Land Rover will offer pure electric power, nameplate by nameplate, by 2030. By this time, in addition to 100 percent of Jaguar sales, it is anticipated that around 60 percent of Land Rovers sold will be equipped with zero tailpipe powertrains.
“‘Reimagine’ is we need to make Jaguar great again. The power of that brand deserves to be greater. Upgrade into modern luxury, so an intent repositioning of this brand, with luxury materials, as well as obviously a luxury exterior design. All of that is in process. We've made a lot of progress over the last few months. We'll bring those details to you going forward,” Adrian Mardell, chief financial officer of Jaguar Land Rover said during the same conference.
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