Jaguar Halts UK Sales Amid Major Transition: On November 11,, a significant shift in British automotive history occurred quietly: Jaguar, long synonymous with luxury cars for prime ministers and royalty, stopped selling new vehicles in the UK. The iconic brand, now owned by Tata Motors through Jaguar Land Rover (JLR), will remain dormant in the UK until 2026. During this time, the company will focus exclusively on high-end electric vehicles.
Jaguar’s EV-Only Strategy
JLR first announced plans to transition Jaguar to an electric-only brand in early 2021, following the UK government's decision to phase out the sale of new petrol and diesel cars by the end of the decade. However, the road to this goal has proven more complex than initially expected for both the company and the country.
Challenges with UK’s Zero-Emission Mandate
This year, a new mandate in the UK requires 22% of new vehicles sold by each car manufacturer to be zero-emission. Unfortunately, many carmakers, including JLR, have struggled to meet this target, with only 18% of new cars registered in the UK by October being battery-electric vehicles (BEVs). Manufacturers who fall short can buy credits from companies that exceed the target, such as Tesla, to avoid penalties.
End of Production for Several Jaguar Models
Jaguar ended the production of several models earlier this year, including the XE saloon, XF sedan, and F-Type sports car. Additionally, the assembly of the E-Pace and I-Pace SUVs in Austria will cease in December, with the remaining vehicles destined for markets outside the UK. This marks the first time since World War II that British consumers will not have access to new Jaguars.
Land Rover Continues to Dominate JLR’s Profits
While Jaguar’s future remains focused on electric vehicles, Land Rover continues to be the main profit driver for JLR. To address Jaguar's decline, JLR executives have planned a major refresh for the brand, with a sneak preview of its new luxury EV range scheduled for December 2 at Miami Art Week. The official launch of the electric vehicles is not expected until the summer of 2026, which is later than originally planned.
Taking Time to Perfect Electric Vehicles
Unlike other manufacturers who have rushed electric vehicles to market, many of which have not been well-received by consumers, JLR is taking its time to ensure its electric offerings are top quality. CEO Adrian Mardell emphasized this approach in a November 8 earnings call, saying that no compromises will be made when it comes to the new BEVs.
Investment in Jaguar’s Electric Future
Although JLR will continue to manufacture the F-Pace SUV in the UK for export until early 2026, Mardell explained that the company’s investment in Jaguar will be carefully managed. The company will invest less in Jaguar compared to a decade ago, aligning resources with the scale and potential of the brand’s future in the electric vehicle market.
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