Jaguar, a British icon, has conceded that its two-decade attempt to compete directly with German luxury giants like BMW and Mercedes-Benz was ultimately unsuccessful. In a recent interview, Jaguar Managing Director Rawdon Glover stated bluntly that chasing volume in the premium market “didn’t work commercially.” The company is now pivoting to a high-price, low-volume strategy focused on bold electric vehicles (EVs) with a starting price of around $283,000 AUD.
The Two-Decade Pursuit of Volume
Beginning in the late 1990s under Ford ownership, Jaguar sought to expand its market share by introducing more affordable models to undercut BMW and Mercedes-Benz. This included the S-Type (launched in 1999) to compete with the BMW 5 Series and the front-wheel drive X-Type (2001) designed to challenge the 3 Series. Later, the XF (2007) and XE (2015) followed, with Jaguar also entering the SUV segment with the E-Pace and F-Pace. Despite these efforts, Jaguar’s global sales in 2020 reached only 102,494 units—far behind BMW and Mercedes-Benz, each selling over two million cars. Even Lexus and Volvo outsold Jaguar by a significant margin.
Why the Shift Matters
Jaguar’s failure to achieve volume sales underscores the challenges of competing in the established premium market. The German brands benefit from decades of brand recognition, engineering prestige, and entrenched customer loyalty. Attempting to replicate this success with lower-priced models proved unsustainable. This outcome highlights the importance of brand positioning and the difficulty of disrupting established automotive hierarchies. The move to high-end EVs signals a recognition that Jaguar must leverage its heritage and exclusivity rather than fighting a price war it cannot win.
The New Strategy: Exclusivity and Bold Design
Jaguar’s future lineup will prioritize higher transaction prices. Before the shift, the average Jaguar sale in the UK was around $111,000 AUD. The new EVs will target an average of $242,000 AUD, with launch editions starting at $283,000 AUD. This positions Jaguar between mainstream luxury brands and ultra-luxury competitors like Bentley and Rolls-Royce. The company’s new models will also feature a deliberately controversial design language, inspired by the Type 00 concept, aiming to create cars that provoke discussion and emotional responses rather than broad appeal.
“People buy emotionally at this price point,” Glover stated, emphasizing that the goal is to create vehicles people will still be talking about in 50 years.
The shift in strategy reflects a calculated risk: betting on exclusivity, bold design, and emotional resonance over sheer sales volume. The company acknowledges that not everyone will love the new look, but believes that the polarizing approach is necessary to stand out in a crowded market. Whether this gamble will pay off remains to be seen.
